When to invest in index funds?
July 16, 2014 3:08 AM Subscribe
I want to start investing in index funds, but most that I look at have gone up in value quite a lot over the last two years. Would it be smarter to wait for a drop before investing, or just go in now?
posted by A Very Muddled Alpaca to Work & Money (14 answers total) 4 users marked this as a favorite
I'll be looking at this as a minimum 10 year investment, so even if I invest now and the market drops, there'll be time for it to grow again. But if it drops, wouldn't it have been smarter to wait until it was low before I bought into it?
Then again, the whole reason I'm interested in index funds is because I am aware how little I know about it all, and therefore am unqualified to make predictions about whether the market will go up or down at any one point.
I've been reading a bit at the boglehead forums, and that approach seems very sensible, but I'm curious to know if it may be clever to delay investing in some scenarios.
I'm based in Australia, looking into the Australian stock market, in the order of 50,000 AUD.