Is 2026 a Good Year for New Investors to Start Investing in the Stock Market?
The Vanguard S&P 500 ETF (VOO) has delivered remarkable growth over the past decade. A $10,000 investment in 2014 would now be worth nearly $40,000, thanks to a roughly 300% rise including dividends. This performance highlights the power of long-term investing, even through market downturns.
The S&P 500 has shown resilience in the face of volatility. In 2020, despite a sharp pandemic-driven crash, the index still climbed 16% by year’s end. A similar pattern emerged in 2025, when tariff-related turbulence caused a brief dip—only for the market to recover and rise another 16%.
Experts like Peter Lynch, John Bogle, and Charlie Munger have long warned against trying to time the market. Instead, they advocate staying invested, as market recoveries often follow crashes. ETFs, such as VOO, simplify this approach by bundling hundreds of stocks into a single, low-cost investment. History supports the case for patience. Investors who held steady through downturns have seen stronger returns than those who speculated on short-term swings. Even legendary figures like Warren Buffett and Ray Dalio emphasise consistency over timing.
For most investors, starting early and staying invested remains the most reliable strategy. Index funds like VOO provide a straightforward way to build wealth over time. The data shows that market recoveries tend to outweigh temporary setbacks—making long-term commitment a practical choice.
