Don’t Let Market Highs Sway You From Equity Investing

Since the 2024 U.S. elections came to a close, many of Wall Street’s major indexes have posted strong results. Along with bitcoin and Tesla stock, the broader equity market has continued to see compelling results. While this bodes well for current equity investors, it does pose an interesting question: is it too late for others to jump in on these equity highs?

The team at Natixis Investment Managers believes there’s still a good use case for adding equity exposure during market highs. In recent insights, the Natixis team broke down a few reasons why equity investing may still be the move. 

First, the Natixis article notes that even stronger highs could always follow the record-breaking market performance. Generally speaking, there’s good historical precedent for the S&P 500 to see record highs eclipsed by even stronger numbers in the coming days.

While investors may balk at jumping into the market while it’s hot, it could prove costly if it continues to grow in the long run. The Natixis insights pointed out that several strong economic factors can continue to push equities higher. 

One factor that continues to drive the broader U.S. market is the resilient U.S. economy. Despite concerns that growth could be getting too slow, Natixis reiterated that the labor market remains strong.

“The consumer has a job. Real wages have been rising thanks to falling inflation. And hours worked remain steady. This means the consumer remains resilient and should continue to spend,” added Jack Janasiewicz, Portfolio Manager and Lead Portfolio Strategist at Natixis Investment Managers Solutions.

Opt For Growth

The Natixis Loomis Sayles Focused Growth ETF (LSGR) can help investors stay engaged with the equity market’s highs. LSGR lets investors tap into a disciplined, growth-oriented portfolio built for the long term. 

When selecting portfolio assets, LSGR actively searches for high-caliber companies with robust competitive advantages. This includes reputable names like Nvidia, Meta, and Salesforce. 

By focusing on high-quality companies, LSGR can stay engaged in the market highs while offering resilient long-term value. As such, the fund can remain a very valuable investment choice, even during periods of market highs. 

For more news, information, and analysis, visit the Portfolio Construction Channel.