The S&P 500 has already hit 18 new all-time highs this year.

As I’ve been saying for a while, all-time highs are very positive. Few signals are more bullish than that.

It’s not just the index that’s at another high. Profits for companies in the S&P 500 also reached a new record last quarter. That’s why stocks keep pushing higher.

Earnings season is pretty much over for now. But we still have one big finale left: Nvidia, the biggest and arguably most important company in the world right now, reports earnings on August 27. That will definitely be a market-moving event.

The top three stocks — Nvidia, Microsoft, and Apple — together now make up over 21% of the S&P 500. That’s the highest share ever for just three companies. It also means that as long as big tech does well, it’s almost impossible for the market to correct significantly.

Seasonality is something people like to focus on this time of year. The period from mid-August to mid-October is usually a softer spot for the market.

Although seasonality is less favorable over the next few weeks, it’s very unlikely we’re at the top. Since 1980, the S&P 500 has only peaked in August once. So while pullbacks should be expected, worrying about buying right before the top usually isn’t worth the stress.

Last week saw the 10th-largest inflow into stocks from institutions ever and the most net buying since September last year. Institutions that missed the rally earlier this year are now buying every little dip.

Another chart I’ve been seeing a lot lately is the price-to-book ratio. It looks very high.

But here’s what most people miss:

• profit margins are higher

• revenues are growing faster

• today’s companies don’t require as much capital

• intangible assets like software and IP now make up most of their value

The main reason is that investors are confident the Federal Reserve will start cutting again soon. By the end of 2026, the Fed Funds Rate are expected to be closer to 3 percent. Cheaper financing makes life easier for small companies and often supports stock prices (more on the main sectors to watch in the next post).

The market continues to climb higher, and there’s no reason to think this bull market will end anytime soon. But markets don’t go up in a straight line. Volatility is starting to return, especially in risk-on assets. I wouldn’t be surprised to see a correction or at least a period of consolidation. That means it’s not the time to be overly aggressive, but to stay patient and prepare for the next set of opportunities.