Is 2026 a Good Year for New Investors to Start Investing in the Stock Market?
Stock market crashes often spark panic, but history shows recoveries follow. In 2025, the S&P 500 climbed 16% after a brief April slump caused by tariff concerns. Five years earlier, the same index rose by the same margin despite the pandemic’s economic shock. Experts argue that staying invested—rather than trying to time the market—remains the wisest strategy for long-term growth.
Legendary investors like Peter Lynch, John Bogle, Benjamin Graham, and Charlie Munger have long warned against market timing. Their advice centres on one principle: consistent investment outperforms speculation. Even sharp downturns, such as those in 2020 and 2025, proved temporary, with the S&P 500 rebounding strongly in both cases.
Warren Buffett’s actions reinforce this approach. In the third quarter of 2025, his company Berkshire Hathaway bought 17.8 million shares in Alphabet. The move signalled his ongoing trust in equities, regardless of short-term volatility. Buffett himself has repeatedly stated that there’s never a truly bad time to enter the market for those with a long-term view. For many, exchange-traded funds (ETFs) offer a straightforward way to follow this strategy. The Vanguard S&P 500 ETF (VOO), for example, has delivered roughly 300% growth over the past decade, including dividends. Such funds spread risk by holding a broad mix of stocks, reducing the need for constant trading decisions.
The evidence supports a simple truth: patient, long-term investing tends to yield the best results. Whether through individual stocks or diversified ETFs, those who remain in the market—rather than attempting to predict its swings—historically benefit the most. The approach aligns with the strategies of some of the most successful investors in history.
