Is now a good time to start investing?
It's the question everyone asks, and the one Reddit, TikTok and the family group chat answer differently every time. Here's an honest answer, and the questions that usually matter more.
The short answer
Nobody can reliably tell you. Share prices move on news that hasn't happened yet, so no one can consistently predict what markets will do next week or next year: not Reddit, not TikTok, not the experts on the news.
That's why a more useful question is usually “am I ready to start?” That depends on things you can actually answer: how long until you'll need the money, whether you have savings set aside for emergencies, whether you have expensive debt, and how you'd feel if your investments fell for a while.
Why can't anyone tell me if now is a good time?
Prices already reflect what people know today. They move when something surprising happens, and surprises, by definition, aren't predictable.
Early 2020 is a clear example. Between 19 February and 23 March, the S&P 500 fell nearly 34% as Covid-19 spread, one of the fastest falls on record. Then, on 18 August 2020, it closed at a new record high.2 Very few people saw the fall coming, and very few predicted how quickly prices would turn around. That's history, not a promise about next time: falls can also last much longer.
Waiting for a better moment is a prediction too. It's a bet that prices will be lower later, and it can be wrong in either direction.
What usually matters more than timing?
These are the questions money guides like Sorted encourage people to answer before they start.1 None of them needs a prediction.
- How long until you need the money? Share prices can rise and fall a lot along the way. Sorted describes shares as generally better as a long-term investment, of at least a decade. Money you'll need soon is more exposed to a fall at the wrong moment.
- Do you have a buffer for emergencies? Without one, an unexpected bill could force you to sell your investments at a bad time.
- Do you have expensive debt? Paying off a credit card saves you its interest for certain. Investment returns are never certain.
- How would you feel if it fell? Picture $1,000 showing as $700 for a year. If that would make you want to sell, that's useful to know before you start. It might point you towards a lower-risk type of investment, or a smaller amount.
- Do you understand what you're buying? If you can't explain it in a sentence or two, it's fine to take more time to learn first.
Is it better to invest all at once or a little at a time?
There are two common approaches, and neither comes out ahead every time.
- All at once (a lump sum). Your money is invested sooner, but the price you pay depends on that one day.
- A little at a time. You invest a fixed amount on a regular schedule, like every week or month. Sorted calls this investing “little and long”. It's also known as dollar-cost averaging.
Investing a fixed amount regularly means you automatically buy more units when prices are low and fewer when they're high. Here's how that works over four months.
$100 a month into a fund. Illustrative prices, not a forecast
| Month | Unit price | You invest | Units bought |
|---|---|---|---|
| 1 | $1.00 | $100 | 100 |
| 2 | $0.80 | $100 | 125 |
| 3 | $1.25 | $100 | 80 |
| 4 | $1.00 | $100 | 100 |
| Total | avg $1.01 | $400 | 405 |
The average unit price over the four months was $1.01, but the average you paid was $400 ÷ 405 units = $0.99, because $100 bought more units in the cheap month. This doesn't guarantee a better result than investing all at once: if prices mostly rise, money invested earlier has longer in the market. What it mainly does is take the “when” question off your plate.
What if the market falls right after I start?
It might. Falls are a normal part of investing in shares, and they're uncomfortable. A fall shows up as an unrealised loss: it's what your investments are worth that day, and it isn't locked in unless you sell. Our page on how to read your portfolio explains the difference.
Whether to hold, sell or keep going is always your decision. It's much easier to make calmly if you've decided in advance how long you're investing for and what you'd do in a fall. If you're unsure what's right for your situation, a licensed financial adviser can look at it with you.
Common questions
Is now a good time to start investing in NZ?
Nobody can reliably say, because no one can consistently predict short-term market moves. A more useful question is whether you're ready: how long until you need the money, whether you have an emergency buffer and no expensive debt, and how you'd feel if your investments fell for a while.
Should I wait for a market crash before I invest?
Nobody can reliably predict when a fall will come or how big it will be, so waiting is a prediction too. Prices may fall while you wait, or rise. It's a trade-off only you can weigh; investing a little at a time is one way people take the timing question out of it.
What is dollar-cost averaging?
Dollar-cost averaging means investing a fixed amount on a regular schedule, such as $50 a week, whatever the price. You buy more units when prices are low and fewer when they're high. It doesn't guarantee a better result than investing all at once, but it spreads out when you buy.
How much money do I need to start investing?
Less than many people think. Some New Zealand platforms have no minimum, so you can start with a few dollars.3 With small amounts, fees matter more, so it's worth knowing what fees cost in dollars.
Can I lose money investing?
Yes. The value of investments can go down as well as up, and you could get back less than you put in, especially over short periods. Spreading your money out reduces the effect of any one investment, but it doesn't remove the risk.
General information, not financial advice. This page explains how investing works in general. It doesn't take your situation, goals or attitude to risk into account, and it isn't a recommendation to buy, sell or hold anything. Investing involves risk: the value of your investments can go down as well as up, and you could get back less than you put in. Figures are from the sources below on the dates shown, and may have changed since.
Sources
- Sorted, Shares guide: Te Ara Ahunga Ora Retirement Commission on time frames and investing “little and long”. Checked 20 October 2026.
- Associated Press via PBS NewsHour, S&P 500 closes at a record, erasing last of pandemic losses, 18 August 2020.
- Sharesies, Investments overview: an example of an NZ platform with no minimum investment. Checked 20 October 2026.
Learn as you go
Vestro explains investing in plain English, so the decisions you make are your own and you understand them. It never tells you what to buy or sell, or when.
Get started Education, not advice. Vestro explains; it never tells you what to buy or sell.