Stock prices have been relatively stagnant this year, with the S&P 500 (^GSPC 1.52%) dipping 0.18% since the beginning of 2026, as of this writing.
Some worry this could be a sign that this bull market is nearing its end. In fact, around 37% of investors predict that stock prices will drop in the next six months, according to the most recent weekly survey from the American Association of Individual Investors -- compared to only 34% who are optimistic about the future.
If a bear market is around the corner, it may be tempting to sell your stocks now while prices are still high. But is that really the best move? Here's Warren Buffett's advice.
Image source: The Motley Fool.
The future is bright for the market
At 95 years old, Warren Buffett has seen his fair share of bear markets, recessions, and crashes. And in 2008, at the height of the Great Recession, he offered his best advice to discouraged investors worried we'd never see the light at the end of the tunnel.
In an opinion piece for The New York Times, Buffett emphasized the importance of staying focused on the big picture.
"To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions," he explained. "But fears regarding the long-term prosperity of the nation's many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records five, 10 and 20 years from now."
Since this piece was published in October 2008, the S&P 500 has surged by a staggering 621%, proving Buffett's point. Continuing to invest -- even when the future looks bleak -- is one of the most proven ways to build long-term wealth in the stock market.
"Over the long term, the stock market news will be good," Buffett continued. "In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.
"You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain," he noted. "But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy."
Investing in the right stocks is key
Shaky stocks can easily crash and burn during a bear market or recession, as their foundations may not be strong enough to withstand prolonged volatility. It's extra important, then, to ensure you're only investing in healthy companies with the potential for long-term growth.
Healthy companies will have robust fundamentals -- from a strong financial record to a competent leadership team with a history of good decision-making during pivotal moments. Some industries also fare better than others during periods of instability, and a competitive advantage can provide a leg up over the competition.
No matter what happens with the market, a long-term outlook is key. By loading up on quality stocks and riding out the storms, you can earn more than you might think over time.
