When Markets Take Their Time: Understanding Gaps Between All-Time Highs
While we've discussed how common all-time highs can be during bull markets, it's equally important to understand the flip side: sometimes the market goes years without hitting new peaks. This chart visualizes those waiting periods—the number of trading days between each new all-time high since 1950. The dramatic spikes tell an important story about patience and perspective in investing.
- Markets have not hit new highs every year: Since 1950, the S&P 500 has experienced several periods where it went multiple years without reaching a new all-time high, including the mid-1970s, early 2000s, and post-2007.
- Recovery periods have varied in length: Following the peaks in 2000 and 2007, it took over 1,500 trading days—roughly six years—for the index to reach new highs again. Such long gaps have occurred more than once.
- Setting expectations supports long-term thinking: Understanding that new highs may not occur regularly can help investors stay focused on long-term goals, especially during prolonged market recoveries.
