It’s one of the questions we hear most often. “Is now the right time to invest?”
Whether you’re a first-time investor or already have a portfolio, picking the right moment can be intimidating.
Nobody wants to invest today only to watch the value dip next week. When markets are volatile, headlines can make it feel like investing is a pure gamble. And when they’re doing well, it’s all too easy to convince yourself that the bubble is about to burst.
Between the global market outperforming New Zealand shares and stubborn inflation spiking interest rates, sitting tight cam feel like the sensible, low-risk choice.
That instinct to hold off is natural. But it’s worth asking: is waiting really as safe as it feels?
The Hidden Cost of Waiting
The risk of investing now is easy to picture: a fall shortly after you buy. The flipside of this is that the market won’t send you a signal when the coast is clear. Often, by the time you are ready to make the leap, prices have already moved on.
Markets often rise and fall in short, unpredictable bursts, and some of their strongest stretches have arrived when sentiment was low. If you’re waiting for the perfect time to invest, you can miss out on part of that recovery.
This chart shows the performance of $1m invested in the MSCI All Country World Index since 1998. Data Source: Bloomberg. Image Source: ANZ Investments.
It’s hard to call the highs and lows consistently, which is why time in the market usually matters more than timing the market. Patient investors see greater returns, while putting off a planned investment limits potential growth.
There’s also another risk to waiting that’s easy to overlook: what is happening to your cash as it sits idle. The interest you gain on savings in the bank can’t keep up with inflation. More time spent waiting is more time your hard-earned money has to lose value.
It Doesn’t Have to Be All or Nothing
None of this means that you need to throw all your savings into investments right this instant. Putting a large sum to work in one go can feel like a huge leap, especially if worry about the market has already been holding you back. The choice isn’t simply “invest everything now” or “wait until the perfect moment.” There is a middle path.
One approach some investors use is dollar cost averaging. Instead of investing your full amount at once, you invest smaller amounts at regular intervals, say monthly, over a set period. When markets dip, each investment buys more units for the same dollar amount. When markets rise, the units you already hold increase in value.
This chart shows the performance of investments in the MSCI All Country World Index. Data Source: Bloomberg. Image Source: ANZ Investments.
Dollar cost averaging doesn’t remove investment risk, and it won’t always beat investing a lump sum. What it can do is smooth out the effect of short-term ups and downs and take the pressure off finding the “perfect” entry point. For many people, that peace of mind makes it easier to get started sooner.
Focus on What You Can Control
Inflation, interest rates, global events and day-to-day market moves are outside anyone’s control. The good news is that the things that matter most to your long-term outcome are much closer to home.
Start with your goals. Be clear on what you’re investing for, whether that’s a first home, retirement or building wealth for your family. Then think about your timeframe: the longer you are in the market, the longer your money has to grow, while riding out the bumps along the way.
Diversification matters too. Spreading your money across different asset classes means you’re not relying on any single market to do the heavy lifting, or guessing which one will lead next. And finally, there’s discipline. Investing consistently and sticking to your plan when the headlines get noisy is often where long-term results are made.
What Could Your Money Be Doing For Your Future?
Successful investing tends to be less about predicting what markets will do next and more about having a clear, focused plan that aligns with your personal circumstances. That’s why it’s important to know your goals, timeframe, and how much risk you personally are comfortable with. There’s no single right approach for everyone.
This is where an enable.me wealth adviser can help. Our advisers aren’t here to predict the market, but to help you look at the bigger picture. Whether you’re making your first investment, adding to your portfolio or checking your current strategy still fits, they’ll walk you through your options and help shape an approach that suits your goals, timeframe and comfort with risk.
Ready to build an investment plan you can feel confident in, whatever the markets are doing? Book a consultation with one of our wealth advisors today.
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General information only
This article is general information only and doesn’t take into account your personal circumstances, financial situation, or goals. For advice specific to your situation, speak with a qualified financial adviser or mortgage adviser.
