I Know That a Bear Market Is Coming Eventually. This Is Warren Buffett’s Single Best Piece of Advice for Investors
Selena Maranjian, The Motley Fool
Sat, July 18, 2026 at 12:50 PM GMT+5:30
2 min read
- NVDA
-2.21% - ^GSPC
-1.01% - CL=F
+4.47%
Is a bear market around the corner? No one can say for sure, but one is certainly coming eventually, and perhaps soon. There are plenty of reasons to expect one. Consider, for example, geopolitical and economic concerns such as tariffs, the war with Iran, volatile oil prices, the threat of inflation (and, therefore, potentially rising interest rates), and even artificial intelligence (AI)and the data centers used to run it
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Meanwhile, the long-term average annual gain for the S&P 500 is close to 10%. How has it done lately? Check it out:
Those are six fat double-digit gains in the past seven full years, and a double-digit gain so far in 2026 through July 14. Sure, the S&P 500 could notch another big (or small) gain by year-end. But it won’t surprise me at all if it pulls back soon, with a recession following
What to do
So what should you do? Well, maybe listen to Warren Buffett, who has said that “bad news is an investor’s best friend.” That may sound a bit wrong, but remember that bad news in the form of a sharp stock market pullback means that shares of stock in great companies — ones you may have wanted to own — will be on sale. It’s a great time to buy stocks! So perhaps keep some cash on hand in anticipation. Maybe put aside some cash in case of a recession-related drop in income, too
Money you won’t need for five, if not 10, years shouldn’t be invested in stocks. For such money, look at certificates of deposit (CDs), savings accounts, and bonds
Long-term money is likely to grow well in the stock market, so expect occasional pullbacks and plan to ride them out. They often last just a few months or a few years, though they couldlast longer
Missed Nvidia in 2009? This Rare Signal Is Flashing Again
In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,692,973 today.*
Now, for the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast
*Stock Advisor returns as of July 13, 2026
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I Know That a Bear Market Is Coming Eventually. This Is Warren Buffett’s Single Best Piece of Advice for Investors. was originally published by The Motley Fool
