[DigitalToday reporter Yoonseo Lee] David Schwartz (데이비드 슈워츠), Ripple's former chief technology officer, publicly criticised online investment advice that urged retail investors to make small purchases based on the S&P 500 hitting record highs.

On May 27 local time, blockchain media outlet BeInCrypto reported that Schwartz replied to the post spreading on X, formerly Twitter, with "1) Buy high 2) ??? 3) Profit," pointing to a gap in the logic of buying at a peak.

The post at the centre of the controversy said, "If you only have $5 in spare cash, invest it in an S&P 500 index fund." The author cited the index being near an all-time high as the reason to buy, and the post spread quickly, drawing close to 5 million views.

Schwartz said it left out an explanation of how profits are made after buying at a high. He raised the issue that the fact prices are rising alone does not complete the rationale for buying.

The reaction came as the S&P 500 has continued a record upward trend in 2026. The S&P 500 neared an all-time high after posting a $6 trillion rally in 10 days. As signs of a rebound continued early in the year, the index climbed toward a new peak.

Buying at a high, however, rests on the premise that even higher prices will follow. Investors who focus on valuation see a high entry price as potentially reflecting a multiple that has risen excessively relative to corporate earnings. Critics say advice centred only on momentum does not sufficiently address this point, even though the entry price carries significant weight in long-term returns.

Schwartz is known as a figure who often stresses investment risk. He has previously described cryptocurrencies as a "once-in-a-generation opportunity for wealth" while also publicly mentioning the risks and costs that come with them. This remark is also seen as a warning against a simple narrative of investment success in the same context.

Schwartz has also voiced views on the release of Ripple's XRP escrow holdings, memecoins and bitcoin's incentive structure. The common thread is that he has taken a critical approach to narratives that overly simplify investment risk. This remark, too, is closer to criticism aimed at broad recommendations to buy based solely on price gains than to a call to avoid stock investing.

He still holds more than 1 million XRP. He has maintained conviction in assets he has understood over a long period while keeping his distance from popular investment advice lacking a clear basis.

In this situation, market attention is focused on whether the S&P 500 will extend gains near its peak or whether controversy over overvaluation will come back into focus. Schwartz's point is ultimately not the record high itself, but that the investment logic explaining why to buy at that price is missing.

1) Buy high. 2) ??? 3) Profit.