I'm interested in investing in domestic (e.g. S&P 500) and international index funds. My investing time period is 30-40 years. This is irrational, but I'm worried about investing now because the stock market seems quite inflated. Like others, I'm wondering if it's better to start investing when there's another major crash. My question is: can I receive more evidence and reasoning about why it's better to invest now rather than waiting for the market to dip again? By dip I mean when the S&P500 ETF dips below the lower Bollinger Band within a 5-year window.
Reading the articles below, it appears that it doesn't matter WHEN you start investing. I found these points compelling, but would appreciate more elaboration.
As one person puts it, "amortized over decades, the difference on average will be negligible.
Another person points out that over the past few decades, the trend for the us stock market has been to go up. If I were to have waited for a significant dip, I wouldn't have invested until the dot com crash and missed out on several decades of growth.
Dollar value or cost averaging helps me spread out the risk of any major drop or increase.