Is 2026 a Good Year for New Investors to Start Investing in the Stock Market?

2 hours ago 5

David Jagielski, CPA, The Motley Fool

Sat, December 20, 2025 astatine 2:50 PM CST 5 min read

  • Valuations are precocious successful the banal marketplace today, and that whitethorn deter radical from investing.

  • Trying to clip the market, however, tin beryllium a risky strategy that costs you money.

  • Keep this successful mind: portion crashes are inevitable, truthful are marketplace recoveries.

  • 10 stocks we similar amended than Vanguard S&P 500 ETF ›

Are you reasoning astir buying stocks successful 2026? Investing successful the banal marketplace has historically been a bully mode to turn wealth. By holding a divers premix of stocks, you tin turn your savings implicit the agelong word astatine a acold higher complaint than you could ever imagination of by conscionable keeping your wealth successful a savings account.

However, determination are besides crashes that tin happen, which scar investors forever. And with the banal marketplace hitting grounds levels yet again successful 2025, you whitethorn beryllium wondering whether present is simply a harmless clip to put successful the banal market. Here's what you request to know.

An advisor showing a tablet to a couple.

Image source: Getty Images.

Stock marketplace crashes tin and volition hap without overmuch warning. Back successful 2020, quality of the pandemic spooked the markets and for a abbreviated time, it sent stocks into a monolithic tailspin. But what happened successful the months afterward was possibly adjacent much surprising: a swift betterment that led to a surge successful stock prices. The S&P 500, which is simply a postulation of the starring stocks connected the marketplace and which is utilized to gauge the market's wide performance, ended up rising 16% that year.

A akin improvement occurred backmost successful April of this year, erstwhile quality of reciprocal tariffs tanked the market. The little clang that occurred arsenic investors panicked arsenic a effect of tariff-related quality didn't past agelong and has an uncanny resemblance to the sell-off that took spot 5 years earlier. The 1 large difference: It took spot successful April, alternatively than March. And erstwhile again successful 2025, the S&P 500 is up 16%.

Recoveries don't usually hap that quickly, but the unpredictability of crashes and recoveries is wherefore investing successful the market, and hanging connected for the agelong term, is often the champion people of enactment for investors.

If you deliberation valuations are precocious close present and are hesitant to invest, see what immoderate of the world's smartest investors person to accidental astir timing the market:

  • Peter Lynch: "Far much wealth has been mislaid by investors preparing for corrections oregon trying to expect corrections than has been mislaid successful the corrections themselves."

  • John Bogle: "The thought that a doorbell rings to awesome erstwhile investors should get into oregon retired of the marketplace is simply not credible. After astir 50 years successful this business, I bash not cognize of anybody who has done it successfully and consistently."

  • Benjamin Graham: "The speculator's superior involvement lies successful anticipating and profiting from marketplace fluctuations. The investor's superior involvement lies successful acquiring and holding suitable securities astatine suitable prices."

  • Charlie Munger: "The large wealth is not successful the buying and selling ... but successful the waiting."


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