When the market is at or close to all-time highs, investors ask us, “Should we put money to work, or should we wait for the crash? You’ve been telling us to ‘buy the dip’ for years. So, we should wait, right?”
That might work if you knew when the dip was coming. Since 1950, the S&P 500 Index has recorded nearly 1,400 new closing all-time highs, averaging just under 20 per year. And 2026 is running ahead of that average, with 26 all-time highs through mid-August. Record closes are common in bull markets, and despite the 2022 bear market, the broader market trend in recent years has remained positive.
When the market feels like it is continuously going up, when do you put new money to work? No one wants to buy at the peak only to watch their investments fall.
Let’s step back and define “put money to work,” starting with rebalancing. Over the past 12 months, the Energy and Information Technology sectors have gained more than 51% and 33%, respectively. Over the last five years, their cumulative gains exceed 215% and 170%, respectively. If you are not rebalancing regularly, your portfolio may be much more aggressive or conservative than your financial plan calls for. Rebalancing realigns the weightings of the assets in your portfolio to match your original or desired allocation, and it can be done by investing new money into the sectors or assets that have fallen behind. Using new money to rebalance may allow you to avoid selling appreciated investments and realizing capital gains. Additionally, depending on your asset mix and planning needs, you might need to buy bonds instead of stocks with new money.
Excess cash can also be put to work paying down high-interest debt. While credit card debt is the obvious area to pay down, consider car loans, personal loans, certain home equity lines of credit, and second mortgages. Before paying down mortgage debt on your primary residence, consider consulting your tax preparer to understand how doing so could affect your mortgage interest deduction, if applicable.
If you still believe that investing in the market will yield a better return for your situation, consider dollar-cost averaging by investing at set intervals rather than trying to time your purchase with a pullback. An all-time high today does not necessarily mean you are buying at a long-term peak. Historically, markets have often gone on to reach many more record highs over the years that follow.
Don’t rely on market sentiment or performance to tell you what to do when you have money to invest. Go back to your financial plan and consider how that cash can move you closer to your goals. Also consider where the excess cash came from, whether through dividends, pay increases, inheritances, or another source. A change in your cash flow or financial circumstances may be a reason to revisit your plan and confirm that the goals you are working toward are still priorities. Just as markets change, so can your priorities, goals, time horizons, and risk tolerance.
If you have questions about how to put excess cash to work in a way that supports your financial goals, the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
Listen to the August 15, 2026 “Henssler Money Talks” episode.
Disclosure: This article is for demonstrative and academic purposes and is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products. |