Should You Really Invest in the Stock Market Right Now? Here's Warren Buffett's Best Advice.

Political uncertainty has rattled the market, with the S&P 500 (^GSPC 0.45%) down 2.42% over the last month, as of this writing. Many investors are understandably nervous about what this means for the future, with recession fears continuing to grow.

While nobody can predict what will happen in the short term, Warren Buffett can offer some timeless advice on navigating difficult situations.

A long-term mindset is key

In a 2008 opinion piece for The New York Times, Buffett reassured investors who were discouraged and burned out by the Great Recession. The S&P 500 lost more than half of its value between 2007 and 2009, and many Americans were struggling to see the light at the end of the tunnel.

Image source: Getty Images.

“In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary,” Buffett noted. But he went on to say that his action plan was to buy more stocks. “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”

This is one of Buffett’s best-known tidbits of advice, and it still rings true today. When stock prices fall, many investors stop buying out of fear. But downturns are among the best opportunities to invest, as you can load up on quality stocks at a discount.

Buffett also mentioned that despite experiencing many, many bouts of short-term volatility, the stock market continues to thrive over time.

“You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain,” he explained. “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.”

What should investors do right now?

If the headlines are making you queasy right now, you’re not alone. But selling your stocks right now could be a risky move.

There are no guarantees that a recession is coming. If you sell your stocks now and prices quickly rebound, you could miss out on potential gains. At the same time, if you withdraw from the market after prices have already plunged, you risk locking in losses by selling your investments for less than you paid for them.

While it’s often easier said than done, continuing to invest consistently is key to setting yourself up for long-term gains.

If history shows us anything, it’s that the market is all but guaranteed to thrive over time. In fact, since December 2007 – the official start of the Great Recession – the S&P 500 has surged by more than 350%.

^SPX data by YCharts

Owning high-quality stocks can make it easier to invest when the market is shaky. Even healthy companies can lose value during a recession, but they’re far more likely to bounce back eventually. All you have to do, then, is hold your investments through the rough patches and wait for the inevitable recovery.

Market volatility can be nauseating at times, but downturns can also be lucrative opportunities for investors. In the wise words of Warren Buffett: “Bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.”