If I Could Tell Every Investor 1 Thing About the Stock Market Right Now, It's This

From the perspective of an objective investor, it’s impossible to have any complaints about the stock market. Look at the S&P 500 index (^GSPC +0.12%). It generated total returns of 26%, 25%, and 18%, respectively, in 2023, 2024, and 2025. And as of July 29, its total return in 2026 is 9%.

Had you bought $10,000 of an S&P 500 exchange-traded fund at the start of 2023, you’d have about $20,000 right now. That performance warrants extreme optimism. But this doesn’t seem to be the prevailing mood.

It’s time for a mental reset. If I could tell every investor one thing about the stock market right now, it’s this.

There are many different causes of fear, uncertainty, and doubt

Despite the impressive gains registered by the benchmark index, there is one matter that simply doesn’t change. Investors are always full of fear, uncertainty, and doubt (FUD). This view is understandable. These days, investors have many reasons to worry about their portfolios.

For example, inflation is a pressing topic. Investors wonder when it will come down closer to the Federal Reserve’s 2% long-run target. What the central bank will do with interest rates always attracts an unbelievable amount of attention.

There’s also artificial intelligence (AI). The extraordinary amount of capital being spent on AI, and the uncertain returns spark bubble concerns. This technology’s potential impact on the labor market and consumer spending behavior is another unknown.

Navigating turmoil is essential for investing success

If investors take the time to look at history, there’s a clear takeaway. The economy and market always give investors reasons to experience FUD. It’s difficult to find periods when this isn’t the case. It’s human nature to worry about possible dangers that lie ahead. After all, we are dealing with our own money here.

FUD is the constant, even as the S&P 500 index keeps rising. The benchmark posted five straight years of total returns exceeding 20% in the 1990s. But this didn’t prevent investors from thinking about issues with emerging market currencies, rapidly rising interest rates, and intense geopolitical tension.

The top investors don’t try to fight this reality of persistent FUD. They understand that navigating the distress with the right temperament is absolutely critical for long-term success. There is no such thing as a certain economy and market. They don’t exist.

Everyone wants to be a skillful stock picker. But investors would be much better off if they spent more time upgrading their mindset, psychology, and behavior to better handle the never-ending FUD.