If you are thinking about starting your investing journey, you might be feeling a little nervous after last week's sharp market drop.
Share prices fell across the board, headlines were filled with doom and gloom, and it looked like a terrible time to even think about investing.
But here's the thing: what just happened could actually be one of the best things for new investors.
Yes, really.
Last week's selloff was driven by renewed fears over global trade tensions and a broader shift in investor sentiment. But seasoned investors know that short-term volatility is normal, and that selloffs often create opportunities to invest in quality assets at cheaper prices.
Think of it like a sale at your favourite store — the products haven't changed, they're just cheaper for a limited time.
If you're about to start investing, these lower prices could give your money a stronger foundation for growth over the long term.
One of the most common mistakes beginner investors make is waiting for the perfect time to start. The reality? No one knows when that is — and trying to time the market is almost impossible.
But starting during a significant dip like this could actually give you a head start. You're entering the market at a time when quality companies are trading at discounts, setting you up for potentially stronger returns as prices recover over time.
And if you invest regularly, such as monthly or fortnightly, you'll benefit from dollar-cost averaging — buying more units when prices are low and fewer when they're high. It is a smart, proven way to reduce the impact of market ups and downs.
You don't need to be a stock-picking genius to get started. Exchange traded funds (ETFs) make it easy for beginners to invest in a wide range of companies with a single trade.
For example, the Vanguard Australian Shares Index ETF (ASX: VAS) gives you exposure to the top 300 Australian companies and the Betashares Nasdaq 100 ETF (ASX: NDQ) tracks the biggest names in US tech, such as Apple, Microsoft, and Nvidia.
There are also funds like the Betashares Global Quality Leaders ETF (ASX: QLTY), which focuses on strong global businesses with healthy balance sheets and consistent earnings.
If you're just about to begin your investing journey, don't let last week's market drop scare you off. In fact, it could be the perfect moment to start.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.