Are you thinking about buying stocks in 2026? Investing in the stock market has historically been a good way to grow wealth. By holding a diverse mix of stocks, you can grow your savings over the long term at a far higher rate than you could ever dream of by just keeping your money in a savings account.
However, there are also crashes that can happen, which scar investors forever. And with the stock market hitting record levels yet again in 2025, you may be wondering whether now is a safe time to invest in the stock market. Here's what you need to know.
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Crashes are inevitable, but so are recoveries
Stock market crashes can and will happen without much warning. Back in 2020, news of the pandemic spooked the markets and for a short time, it sent stocks into a massive tailspin. But what happened in the months afterward was perhaps even more surprising: a swift recovery that led to a surge in share prices. The S&P 500, which is a collection of the leading stocks on the market and which is used to gauge the market's overall performance, ended up rising 16% that year.
A similar phenomenon occurred back in April of this year, when news of reciprocal tariffs tanked the market. The brief crash that occurred as investors panicked as a result of tariff-related news didn't last long and has an uncanny resemblance to the sell-off that took place five years earlier. The one big difference: It took place in April, rather than March. And once again in 2025, the S&P 500 is up 16%.
Recoveries don't normally happen that quickly, but the unpredictability of crashes and recoveries is why investing in the market, and hanging on for the long term, is often the best course of action for investors.
The world's smartest investors don't believe in timing the market
If you think valuations are high right now and are hesitant to invest, consider what some of the world's smartest investors have to say about timing the market:
- Peter Lynch: "Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves."
- John Bogle: "The idea that a bell rings to signal when investors should get into or out of the market is simply not credible. After nearly 50 years in this business, I do not know of anybody who has done it successfully and consistently."
- Benjamin Graham: "The speculator's primary interest lies in anticipating and profiting from market fluctuations. The investor's primary interest lies in acquiring and holding suitable securities at suitable prices."
- Charlie Munger: "The big money is not in the buying and selling ... but in the waiting."
The main idea behind these quotes is that remaining invested, rather than speculating and picking the best times to buy and sell stocks, can yield the best returns for investors. Getting in and out of the market could have proven to be a disastrous idea in both 2020 and 2025, when the market didn't dip for all that long.
When in doubt, go the ETF route
There's never a bad time to invest in the stock market, particularly if you're planning to hold on for the long term. An exchange-traded fund (ETF) can simplify your strategy by holding a basket of stocks. The Vanguard S&P 500 ETF (VOO 1.53%) tracks the S&P 500, making it an easy way to gain exposure to the overall market. With an expense ratio of just 0.03%, its low fees can make it a no-brainer option to hang on for the long haul.
NYSEMKT: VOO
Key Data Points
In the past 10 years, the ETF has risen by around 300% when including dividends. It would have turned a $10,000 investment into nearly $40,000. That averages to a compound annual growth rate of approximately 14.7%. It's a stellar return, and it includes remaining invested amid corrections and crashes as well.
The key takeaway for new investors is that there's no wrong time to get started in the stock market. As long as you can afford to do so, it can always be a great time to invest, especially in a safe index fund that tracks the S&P 500.
