Resilient retail sales
This year has been characterized by policy uncertainty and fears about the potential impact of tariffs on inflation. While many expected the consumer would crack amid weaker sentiment, it hasn’t happened yet. Retail sales remain resilient, supported by a job market that remains good enough to support spending.
3 mins Reading time
Published on 21 July 2025
It has certainly been a volatile first half of the year for equity markets with uncertainty around tariffs and the administration’s other policies weighing on investor sentiment. From February 19 to April 8, the S&P 500 fell a notable 19%, skimming the surface of bear market territory. However, since then the index has risen 26% to a new all-time high on July 3.
While some investors may not feel comfortable buying when markets are at new highs, history shows there is little difference between future returns following a new all-time high and future returns following any other day when the market has not registered a new high. Since 1950, the S&P 500 has delivered strong returns in the forward 1-, 3- and 5-year periods from a new all-time high. The reason is the day of an all-time high is just like any other trading day, and investors are best served by viewing them all through the same lens.
Don’t let fear of all-time highs keep you on the sidelines or you’re bound to miss out. Rather, stay invested and diversified and maintain a long-term perspective. That’s the most effective way to build wealth.
775473 Exp : 21 July 2026
YOU MIGHT ALSO LIKE
Earnings growth is on investors’ minds, especially as it broadens beyond the big tech stocks that have shown the most improvement in the past. We believe this is a positive sign for continued equity gains.
The S&P 500 is trading at record highs, which some investors didn’t see coming after the tariff-fueled drop in April. What may come as a bigger surprise, however, is the rally is broadening beyond big technology companies. Let’s examine different measures that prove this point.
Small businesses are becoming more optimistic, a positive indication at a time when economists are debating whether growth will slow. We view this confidence as a positive signal for future growth.
It’s true that the S&P 500 currently exhibits high valuations, with the technology sector alone comprising over 40% of its market capitalization and driving concerns about valuations. Are those high multiples justified?
