Not to mention a myriad of ASX and US stocks.

This has been fantastic for anyone already invested in these assets. But it complicates matters for those who have money on the sidelines, ready to invest. Many, if not most, high-quality businesses on both the ASX 200 and the S&P 500 are now trading at levels that most experts might call elevated.

Commonwealth Bank of Australia (ASX: CBA) is arguably the local poster child for this problem. However, we have seen shares ranging from National Australia Bank Ltd (ASX: NAB) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES) climb to previously unseen heights and valuations in 2025.

Ditto with S&P 500 stocks like Nvidia Corp (NASDAQ: NVDA), Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B), Microsoft Corporation (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN).

So if I had $5,000 to invest in assets today, where would I turn to?

S&P 500? How I would invest $5,000 today

To start with, I would still happily buy broad-market index funds, such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard Australian Shares Index ETF (ASX: VAS). These investments, which represent entire stock markets, are still expensive by historical standards.

But I believe buying small chunks of them at regular intervals using a dollar-cost averaging strategy is a sound way to navigate the current investing environment. Saying that, anyone who likes the sound of this strategy has to commit to a plan. It doesn't work effectively if you only buy shares when you feel comfortable about investing.

As Warren Buffett once said, "Keep buying it through thick and thin, and especially through thin".

Aside from index funds, I still think there are stocks out there, on both the S&P 500 and the ASX 200, that present good value. Investors need to do their homework to find them, though.

Yesterday, I discussed a few S&P 500 stocks that I think still represent compelling buying opportunities at current valuations. Those included Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Coca-Cola Co (NYSE: KO), Visa Inc (NYSE: V), McDonald's Corp (NYSE: MCD), and McCormick & Company Inc (NYSE: MKC).

Here on the ASX, the VanEck Morningstar Wide Moat ETF (ASX: MOAT) and MFF Capital Investments Ltd (ASX: MFF) still look interesting. As does Woolworths Group Ltd (ASX: WOW) for the long-term investor.

The post Gold and the S&P 500 just hit new records. Where should I invest $5,000 today? appeared first on The Motley Fool Australia.

Last Friday night (our time), the S&P 500 hit yet another new all-time record high, this one 6,532.65 points. It's just the latest high in a year that has seen dozens of new records for this index.

As the S&P 500 tracks the largest 500 companies listed on the US markets, it's a useful proxy for the entire American stock market.

Although new highs for indexes like the S&P 500 are fantastic for investors who already have substantial sums invested in stocks, it can make life difficult for those investors who have cash sitting on the sidelines, waiting to be useful.

As most ASX investors would know, it's been harder and harder to find quality ASX shares on our local markets trading at attractive pricing. But what about the US markets? Are there still American stocks that might provide value for ASX investors even with the S&P 500 at all-time highs?

Where to find value on the S&P 500 right now

Firstly, ASX investors shouldn't just assume that all of the S&P 500's 'Magnificent 7' tech giants are overvalued, just because they've been on a tear for the past few months (or years).

For example, Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) has rallied a significant 19.2% over just the past month. Yet it still trades on a price-to-earnings (P/E) ratio of 25.4.

That's pretty cheap in my view, seeing as Alphabet reported quarterly year-on-year revenue growth of 14% to US$96.4 billion back in July, as well as a 20% spike in net income to US$28.2 billion.

Compare Alphabet's P/E ratio to, say, Telstra Group Ltd (ASX: TLS) or Wesfarmers Ltd (ASX: WES), which are today trading at P/E ratios of 25.5 and 35.5, respectively, and Alphabet looks like a pretty compelling US stock right now.

As a side note, both Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) stock are also trading at a similar earnings multiple to that of Wesfarmers, despite recently posting far better growth numbers.

More US stocks that look interesting at current prices

Another S&P 500 stalwart that I think offers fair value today is Visa Inc (NYSE: V). This company is the most dominant provider of electronic and cashless payments around the world. In July, it posted a 14% year-on-year rise in quarterly revenues to US$10.2 billion and a 19% rise in net income to US$5.8 billion.

Many investors, including myself, expect Visa to continue to enjoy a long growth runway for years to come, thanks to the ongoing global transition to cashless payments.

Visa currently trades on a P/E ratio of 33.5, which again looks pretty compelling compared to what ASX shares are currently offering.

Other stocks that offer decent value to ASX investors right now include Coca-Cola Co (NYSE: KO), McDonald's Corp (NYSE: MCD), and spice stock McCormick & Company Inc (NYSE: MKC).

The post S&P 500 hits another record. Where I still see value in the US market appeared first on The Motley Fool Australia.