Noob here, never invested in stock market and would like to get started but I’m seeing two takes from people on this community: bad idea to invest during ATH of the market vs. others saying no, you shouldn’t wait and the best time to start is asap regardless of state of the market. I’d like to hear elaborate arguments for both POVs. TC: 200k
But we’re at ATH if you invest now
There are studies on this but the conclusion IIRC is if you invested X amount in the S&P every time it hit an all time high, you’d have good positive returns. The market usually goes up and the market will hit new all time highs. Don’t be afraid of ATH necessarily. Doesn’t mean to go all in on ATH. The strategy is to start DCAing now and buying into the market over a long period of time
Can you tell me a bit more about DCA with an example (e.g. someone has 50k cash)? I’ll read up on it but just want to see what different people’s takes are
DCA: Basically just split that $50k into chunks and put it into the market on a regular cadence. Do $5k every two weeks or $10k every month for 5 months or something like that
DCA every week or month. Never stop.
You never know when the market is going to go up or down. Anything can happen at any time, but the bias is generally for the market to go up. Therefore, the best expected time to invest money on hand is ASAP
Depends on if you’re planning to be long term investor or not. If you plan to just invest for long term and not just trying to time the market for quick wins and then pull your money out, then it shouldn’t matter if you invest during ATH or not. Because in long term, stock market will always go up thanks to inflation.
My goal is definitely long term, thanks