Stock Market at All-Time Highs: Should You Buy, Hold or Take Profits?

REITs and stocks are hitting their 52-week highs.

A handful of Singapore blue-chip stocks did even better, soaring by 26% or more.

For some investors, this is exciting news, while for others, it sparks anxiety.

If the stock market has surged to record-breaking levels, does that mean the peak is near?

You are probably wondering if this is the moment to cash out, or if you should keep riding the wave.

This decision depends less on headlines and more on your personal goals, investment strategy, and discipline.

All-time highs are common in investing.

Historically, markets will rise over time.

Companies will innovate and grow their earnings.

Economies expand, resulting in stock markets trending upward over the long term..

However, just because the stock market hits an all-time high, it does not mean a crash is bound to happen.

Market correction and slumps are part of the bigger growth picture.

It may seem illogical to purchase stocks during a bull market, but those who are waiting for a market crash before buying may lose out on a tremendous amount of gains.

An example would be Apple Inc. (NASDAQ: AAPL).

Back on 2 September 2020, Apple rose to a high of US$137.98.

Fast forward five years, Apple’s September 2025’s share price is now US$229.72 per share.

Investors who did not buy the shares in 2020 would have lost out on a gain of US$91.74 per share, which translates to 66.5% in profits.

That’s excluding dividends too.

Impatient investors may attempt to capture short-term gains by buying stocks when it drops and selling once the momentum fades.

But it is not as easy as it looks.

For long-term investors, dollar-cost averaging (DCA) is a more dependable approach as it reduces the impact of volatility and price swings caused by market timing and helps investors avoid ill-timed market predictions.

If you are holding onto quality stocks, the simplest strategy when markets are at record highs is to stay on the course.

The health of the underlying business is more important than the share price attached to it.

For long-term investors, temporary market highs matter far less than the fundamentals of the businesses that they are invested in.

Long-term wealth creation comes from compounding, allowing your investments to grow over the years.

For example, Meta Platforms (NASDAQ: META) has been on an upward trajectory since its initial listing.

Meta’s January 2015 high of US$79.25 would tempt investors to sell their shares.

But if you are someone who looks at long-term investing, you would have benefited when their August 2025 peak hit US$796.25 per share.