Hi investors, my conservative father, who is skeptical about these things, was convinced that investing instead of saving does make sense, so I want to set him up with at least basic ETFs for the S&P 500 and the NASDAQ. My question is whether you would go in right away or wait a while to see what the market does (since people are talking about upcoming drops), given that prices are at highs? Thanks and have a great week.
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SR
Focus mainly on making sure your ETFs don’t overlap, because if you want to have the S&P 500 and the Nasdaq 100 in your portfolio, you’re still investing in "the same thing" and not diversifying.
HA
That's true, they're also quite similar in performance, so we probably can't say which would be better, right?
NI
I definitely wouldn’t wait completely on the sidelines. Since everything is at highs right now, I’d start investing very slowly—perhaps just 3–5% of capital per month—but I’d still try to get into the market.
SR
With a sensible DCA approach, it doesn't matter that the market is high. I'm not saying I'd invest everything at once, but I also wouldn't plan to invest the full 100% over the course of a year.