Investing at all-time highs
6 November 2025
Equity markets have made record highs recently, which can make investors hesitant. It may feel counterintuitive to invest at a peak, but it can be prudent and rewarding. Here’s how ANZ approaches investing when markets appear expensive.
The right strategy and perspective
Global equity markets continue to climb to record highs, defying concerns over tariffs, a cooling US job market, and signs inflation may be resurfacing. While the US leads the charge, several markets across Europe, Asia, and Australasia have also reached new peaks in recent weeks.
This momentum is encouraging for current investors. However, for those considering entering the market or increasing their equity exposure, the timing may feel challenging.
If you're hesitant about investing when markets are at or near record levels, consider this: timing the market is notoriously difficult, and long-term growth often continues beyond previous peaks.
History shows that investing at market highs doesn't inherently signal risk, and not all markets are equally overvalued, even when trading at record levels. Markets have consistently overcome challenges – from geopolitical tensions to economic shocks – while continuing to deliver long-term growth.
New highs are more common than you may think. In 2025 alone, the S&P 500 Index has recorded over 30 new all-time highs. Despite the tariff-related sell-off in April, the index is up nearly 15% year-to-date, as of mid-October.
Don’t think about timing the market, think about time in the market
Trying to pick the perfect moment to invest is tempting, but history shows that long-term investing is what truly pays off. Whether you enter the market at a peak or a dip, short-term fluctuations are inevitable.
Ultimately, there is no “right” time to enter the market. What matters most is the time you spend in the market. Markets have historically trended upward, and those who remain invested are more likely to benefit from that growth. And with term deposit rates easing, many investors are now reassessing their options – looking to equities for the potential of stronger long-term returns.
Consider this: Since the steep sell-off in 2008 during the Global Financial Crisis, the S&P 500 Index has delivered double-digit returns in 11 calendar years – six of which have been returns greater than 20%.
Markets have historically trended upward, and those who remain invested are more likely to benefit from that growth.
Spreading out your investments can smooth volatility
If you're hesitant to invest a lump sum all at once – especially with the market at a record high – you could consider a strategy called dollar cost averaging. This involves spreading your investment into smaller, regular purchases over time. By doing so, you reduce the impact of market volatility – buying more when prices are low and less when prices are high.
It’s a straightforward way to stay invested, while managing risk and building confidence in your investment journey
How ANZ approaches investing at record highs
While market highs are worth celebrating, at ANZ Investments our focus remains steady across all market cycles. Whether it's a market rally or a pull-back, our investment specialists follow a disciplined process grounded in core beliefs designed to support investors through every phase of the market cycle.
Our long-term approach gives us greater flexibility, shaping what we invest in, how we invest, and how we grow our team. By building scale through this strategy, we unlock even more opportunities to deliver stronger outcomes for our investors over time.
We rely on strategic partnerships with external managers that bring broad and deep market knowledge – enhancing our ability to create value. To ensure success, we establish robust checks and balances, negotiate strong commercial terms, and share expertise to inform smarter investment decisions.
Investing for the long term
Short-term market movements are inherently unpredictable. But history shows that, over time, share markets have risen. Hitting new highs is a normal part of that journey and doesn’t always mean a downturn is coming. In many cases, new highs reflect underlying momentum and may indicate continued growth potential.
With the right approach and a long-term view, we believe our investment strategies – no matter where they are in the market cycle – can play a pivotal role in building a prosperous financial future. Whether you’re starting out, or reassessing your current portfolio, now is a good time to explore how our strategies can support your goals.
Speak to your Private Banker or Investment Adviser in the first instance, who will be happy to help you with this.
Discover how ANZ Private can help
At ANZ Private we offer specialised banking and advice and work with high net-worth clients to protect, grow and transition their wealth.
Talk to your ANZ Private Banker or find a Private Banker near you.
Important information
This information is issued by ANZ New Zealand Investments Limited (ANZ). The information is current as at 21 October 2025 and is subject to change. This document is for information purposes only and is not to be construed as advice. Although all the information in this document is obtained in good faith from sources believed to be reliable, no representation of warranty, express or implied is made as to its accuracy, completeness or suitability for your intended use. To the extent permitted by law, ANZ does not accept any responsibility or liability for any direct or indirect loss or damage arising from your use of this information. Past performance is not indicative of future performance. The actual performance any given investor realises will depend on many things, is not guaranteed and may be negative as well as positive.