For those starting from scratch and looking to build passive income, now may seem like a scary time to start. This is because the markets have been growing stronger over the last year or two. Popular indexes such as FTSE100 and an American S&P500 They broke up-to-date records this year. Even with the withdrawal from the Iran conflict, many stocks are near record highs. Are you sure we want to buy at a low price instead?

For anyone worried that the good times are over, here are some uplifting statistics:

• The S&P 500 index (better researched than its British counterpart) breaks its record on average 38 times a year.
• The index ends the month at its highest level every four months.
• Nearly half of all trading days end within 5% of the previous all-time high.

Close to the highs

So what’s going on here? To summarize: stock markets have this tendency usually be at or near record levels. This shouldn’t be too much of a surprise. Firstly, the effects of inflation mean that, even if everything else remains constant, an index such as the FTSE 100 should slowly rise as the value of money falls.

But perhaps more importantly, companies are designed for growth and efficiency. That’s why stocks have been the best performers in years – even beating the real estate market in most cases, which I guess comes as a shock to some of us.

A useful phrase to remember here is that “time in the market trumps market timing.” The idea is that investors should buy as early as possible and not worry about daily fluctuations. The more time you spend investing, the better. And that’s why it’s worth starting Today is better than waiting for a better opportunity.

I’m not going anywhere

Where to start? Stocks that tick many of the boxes for a novice investor can be consumer goods giants Apple (LSE:APPL). The company sells popular products that aren’t going anywhere. The investment can be a great starting point for building wealth for passive income.

It’s worth saying that for many US stocks, the dividends on offer are paltry. Investors expect a dividend yield of 0.39%. For it to be a good investment, the share price will need to augment as a result of economic growth and share buybacks. However, Apple has grown 98% over the last five years, so its track record is good.

As for the downsides, there is an argument that the company has lost its artistic edge. The company that revolutionized consumer electronics with iPhone AND iPad he’s had some stinkers lately. Recently released Apple Vision Pro – a £3,000 virtual reality headset – has barely taken the world by storm and there are rumors of the product being discontinued.

Like stock markets as a whole, Apple’s stock price is currently very close to a record high. However, I don’t think this is a reason to stay away and I do think this is a company to consider.