Episode summary
Should You Invest in Stocks at All-Time Highs?
Ask The Compound
· · Hosts: Ben Carlson, Duncan Hill
Summary
The host argued that the April selloff was a normal and even useful correction, not proof that the market was broken. He said the S&P 500’s long-term pattern includes frequent 10% to 20% declines, with the average historical correction lasting about 114 days, and that investors need occasional setbacks to avoid more dangerous excesses later. He also said an AI bubble could still develop even after this year’s pullback.
On personal finance questions, the host said young people should not let investing crowd out dating or social life, even if those expenses reduce monthly dollar-cost averaging. He argued that relationships matter more for long-term happiness than maximizing savings in your 20s, though he suggested trimming other costs and dating more creatively.
The episode also pushed back on the idea that students are universally crushed by debt. The host said Gen Z earns more, inflation-adjusted, than prior generations at the same age, and that many borrowers owe far less than six figures. On the housing side, he said affordability is genuinely difficult, but young people will adapt through delayed homebuying, trades, and different career paths. For a lump sum invested at all-time highs, the host said the data actually favor investing now, even if gradual entry feels better emotionally.
Key takeaways
- The host said April’s drawdown looked like a healthy correction and noted that historical S&P 500 corrections average about 14% over 114 days.
- The host argued that dating and relationships should not be sacrificed to protect monthly dollar-cost averaging, especially for people in their 20s.
- The host said the student-debt crisis is less universal than it looks, citing data that 58% of borrowers owe $25,000 or less.
- The host said housing is the biggest affordability problem for young people, but he expects them to adapt through trades, delayed homebuying, and income growth.
- The host said investing a lump sum at all-time highs has historically produced strong forward returns, even if it feels uncomfortable in the moment.
Notable quotes
“I think a healthy correction can be a good thing if it helps stave off an unhealthy correction down the line”
“you don't get those big gains without the occasional big loss. It just has to be this way”
“relationships are it. Every single research report shows that the true thing that builds happiness over time is the relationships you have”
“58% of borrowers have 25K or less in student loans, 78% have 50K or less, and just 8% have 100K or more”
“investing at all-time highs is actually better for average returns than investing on all the other days”
How the episode opens
Welcome back to Ask the Compound. I'm your host, Ben Carlson. The S&P 500 hit new all-time highs in February.
Then it fell nearly 20% in the Liberation Day tariff stuff. Now we're right back at alltime highs. Let's say you sold some real estate recently.
You have a big slug of cash that you want to invest. Should you be scared of investing at all-time highs? I will answer that question and more on the show today.
Stick around. Our email here is askthempoundshow@gmail.com. I'm always happy to answer your questions live on YouTube or Twitter live streams as well.
On today's show, we answer questions straight from our compound viewers about was that a healthy correction in April? Did we actually need it? Was it necessary?
How much should you be willing to spend on your dating budget as a middle-aged guy? I don't know if I'm really okay to answer that one, but I'm going to try. You're really excited about that question.
That's pretty good. Um, are young people screwed with the high costs of education, healthcare, and housing? Does it make sense to have a balanced portfolio if you are a younger investor?
And finally, should you be nervous about investing your money at new all-time highs? All right, today's show is brought to you by Exhibit A. Exhibit A is a platform that we built specifically for financial advisors with custom branded datadriven visuals that advisers can use to communicate with their clients and prospects.
Exhibit A gives you access to hundreds of daily updated charts, 10 plus deck templates, fully whitelabeled with your logo, your colors, your headshot, and your disclosures. Plus, you get talking points each week. And each week, we're also on Fridays sending out a chart of the week with relevant talking points to your clients to understand what's going on in the markets and the economy.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- dca vs dating
- investing at all-time highs
- bubble concerns
- college expenses and macro impact
- portfolio strategy for young people
Companies and tickers mentioned
- Ritholtz Wealth Management
- The Compound Media, Incorporated
Watch the episode
Watch “Should You Invest in Stocks at All-Time Highs?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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