Q: I have a friend who wants to start investing at a regular frequency (every weeks or months) to avoid bad trading decisions but he is a bit reluctant to start investing in the S&P 500 since it is almost at all time high.
What are your advices in this case?
What are your advices in this case?
5i Research Answer:
As they say, the best time to invest is 'today'. A better time is 'yesterday'. New highs are actually common. This article is old but a great reflection on the topic. The simplest solution for reluctant investors is to set a consistent buying program up. Buy a fixed amount of VFV, say, monthly. This eliminates the question of timing and teaches investors that volatility can actually work in your favour (as more units are bought on down months).
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.