I’m a student with a few thousand dollars to invest. I won’t need the money for a while, I’m thinking 25 years. I just want to put my money in a safe passive mutual fund and let it sit for a while. If it grows an average of 8% year-over-year it will be worth over 60 thousand dollars by then.
My question is, is it smart of me to start investing today when stocks are expensive, or save up cash and wait for a crash when stocks are cheap, and start investing then?
Here’s my rational,
If a share today is worth $40 and it will grow for a few years even to $60. But then the market will crash and it will drop to $20 a share. I think it makes sense to buy at $20 later rather then now at $40. If that’s true why would anyone invest now, everyone should be saving money, and if it’s not true then why not?