Many investors are sharing concerns about the stock market’s future, with a recent April 2025 survey by the American Association of Individual Investors revealing that approximately 62% of U.S. investors are feeling pessimistic about the next half-year. This figure represents the highest level of investor concern since March 2009.
Risks of a recession are also escalating, as J.P. Morgan now estimates a 60% likelihood of a recession occurring by year-end, a notable increase from their earlier prediction of 40% following the president’s recent tariff announcements. Similarly, S&P Global has raised its recession probability from 25% in March to a range of 30% to 35% in April.
Amid this sea of negative news, investing might feel daunting. Nevertheless, Warren Buffett, who has navigated multiple recessions, provides some encouraging insights for those feeling anxious about the market.
1. Continue Buying Stocks
In turbulent market conditions, many investors hesitate to purchase more stocks. However, Warren Buffett suggests that doing so is a strategic approach to building long-term wealth. He emphasized in a 2008 New York Times article that “equities will almost certainly outperform cash over the next decade.”
Over the last 25 years, the stock market has faced significant challenges, including the dot-com bubble, the Great Recession, and the rapid decline in March 2020. Despite such turmoil, the S&P 500 has increased by 248% since January 2000, indicating the potential benefits of holding stocks over the long-term.
2. Be Greedy When Others Are Fearful
Buffett advises that the best investment strategy is to “be fearful when others are greedy, and be greedy when others are fearful.” During downturns, investors can acquire solid stocks while they are effectively on sale. For instance, the S&P 500 has dropped nearly 17% since mid-February, which could be perceived as an opportunity rather than a setback, allowing investors to purchase at a discount.
Although caution is warranted around companies that are heavily leveraged or poorly positioned competitively, Buffett reassures that many stable companies will rebound and set new profit records over the coming years.
3. Focus on Strong Businesses
When investing at lower market prices, it’s vital to choose the right stocks. With the market declining, distinguishing resilient stocks can be challenging. Buffett suggests scrutinizing a company’s underlying fundamentals, such as its competitive advantage and competent leadership, which can guide it through tough times.
Buffett and his former partner Charlie Munger advocate for this method of wealth-building, investing based on expected business performance rather than short-term market movements. By acquiring strong businesses now, investors can secure quality stocks at reduced prices, setting themselves up for better gains when the market recovers.
While the current outlook may seem overwhelming, it’s critical to remember that the market is accustomed to dealing with downturns. By leaning into opportunities and remaining invested, navigating these difficult times can become less challenging.
JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, and S&P Global. The Motley Fool has a disclosure policy.
