---
title: Why a Stock Peak Isn't a Cliff
description: Why a Stock Peak Isn't a Cliff
---

[Investments Blog ](https://blog.bh-co.com/blog/investments)

# [Why a Stock Peak Isn't a Cliff](https://blog.bh-co.com/blog/investments/why-a-stock-peak-isnt-a-cliff)

 Written by [Ginnie Baker](https://blog.bh-co.com/blog/investments/author/ginnie-baker) | Jan 21, 2022 6:00:00 AM

** **

- In looking at all monthly closing levels between 1926 and 2021 for the S&P 500 Index, 30% of the monthly observations were new highs.
- After those highs, the average annualized compound returns ranged from over 14% one year later to more than 10% over the next five years. Those results were close to average returns over any given period of the same length.

Reaching a new high doesn’t mean the market will retreat. Stocks are priced to deliver a positive expected return for investors, so reaching record highs regularly is the outcome one would expect.

[View full post](https://blog.bh-co.com/blog/investments/why-a-stock-peak-isnt-a-cliff)

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