Hold tight. Markets look toppy and people are slowly getting excited about investing.
GameStop, Reddit, Crypto, S&P500, are few examples and can be used as a flash temperature check.
It can be argued that it is still does not entirely feel like early 2000s when the Dot com bubble burst, but we might realise, later than expected, that we are into a bubble and we might get hurt.
"Ok, so what?!" Obviously, the issue is that you may be tempted to participate in this hot market and possibly go all in. The secret is to remember that investing is a long term journey and needs to be done monthly on a consistent basis. But you need to start somewhere, and the best time to start is now.
Let's say you have saved or inherited $57,000. What do you do? The investment opportunity set is huge and broad and you might feel lost and almost freeze at the idea of painstakingly researching all the possible ways of investing your liquidity pot. Please do not feel the need to splurge on anything that is hot at the moment (better buying an expensive sport car then).
It is ok to hold a higher-conviction name in your portfolio but do not go all in into one thing only, unless you are really prepared to withstand periods when your portfolio is $30,000 (or more) in the red. Possible!
Therefore, know that there are Bonds, Equities, Commodities, to name a few, and start spreading your $57,000 among these according to your risk appetite.
In a couple of months time, when you have finished investing your liquidity pot, continue on topping your portfolio up with fresh cash contributions so that if the Equities or Bonds or Commodities that you hold have fallen in value, you will keep re-buying at lower prices (dollar cost averaging). The end result is that over time your entry price will be more fair and you will do well.
The benefit of doing it over time and consistently is paramount. Every time you top up your account with fresh contributions you will also have a better information set, you will be more prepared, and lastly you will be in a better position to re-assess the soundness of your portfolio given the current market conditions.
Therefore the key things are
Do not get too EXCITED
Be CONSISTENT
INVEST
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