Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
The S&P/TSX Composite closed at a record high of 34,161.82 on May 20, 2026, climbing 420.58 points or 1.3% in a single session. Canadian investors woke up to a milestone — the benchmark index now sits 32% higher than it did a year ago, data as of May 21, 2026.
But the question many are asking is the same one that surfaces every time markets hit new peaks: should I keep buying at all-time highs, or is it time to wait for a pullback?
What Drove the Rally
Wednesday’s surge wasn’t driven by economic data or corporate earnings. Instead, it was geopolitics. Reports of progress on Middle East peace negotiations — highlighted in public comments from Trump administration officials — triggered broad buying across resource-heavy sectors.
Gold stocks climbed 2.9%, consumer discretionary jumped 2.9%, and materials gained 2.4%, all data as of May 20, 2026. Energy was the lone losing sector, falling 2% as oil dropped roughly 5.7% on reduced geopolitical risk premium.
Movers included Iamgold (+2.6%), First Majestic Silver (+6%), Aritzia (+4%), and Pet Valu (+3.9%). On the downside, Strathcona Resources fell 4.9% and Vermilion Energy declined 4.6%.
The rally was sentiment-driven, not fundamental. That matters when deciding what to do next.
The All-Time-High Dilemma
Every investor faces this question at some point. Markets hit record highs, headlines celebrate the milestone, and you’re left wondering whether you’re buying at the top.
Here’s the reality: no one times market tops. The TSX has made dozens of record highs over its history. Investors who stayed out during previous peaks missed years of compounding returns. The alternative — sitting in cash waiting for a correction that may or may not come — carries its own risk.
Dollar-cost averaging beats market timing. Investing the same amount consistently, regardless of whether the market is at record highs or mid-correction, removes emotion from the equation. You buy more shares when prices are low and fewer when they’re high. Over time, it works.
What Canadian Investors Should Do
Valuations are elevated — there’s no question about that. But they’re not extreme. Canada’s inflation backdrop remains manageable. April 2026 CPI came in at 2.8% year-over-year, below the 3.1% forecast, with core inflation measures at their lowest in roughly five years, data as of May 21, 2026.
The bigger risk isn’t buying at a record high. It’s chasing single-day moves driven by geopolitical headlines. Wednesday’s rally was news-driven, not a fundamental shift in the Canadian economy or corporate earnings outlook.
Stay the course. If you’re building a long-term portfolio, consistency matters more than timing. Continue contributing to your TFSA or RRSP on your regular schedule. Focus on quality Canadian stocks and ETFs, and avoid overreacting to short-term price swings.
For platform selection, check out our guide to the best investing apps in Canada to find the right fit for your strategy. And for specific stock ideas, explore our curated list of the best Canadian stocks across sectors and themes.
The Bottom Line
Record highs are a normal feature of bull markets. They’re not a signal to stop investing — they’re a reminder that disciplined, consistent investing works.
The TSX will eventually pull back. It always does. But trying to predict when that happens is a losing strategy. Dollar-cost averaging, diversification, and a long-term mindset will serve you far better than trying to time the market.
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Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
