Skip to main content

Is investing in the stock market safe?

InvestingWarren Team

Quick answer

Short-term, no, stocks are volatile and can drop 30–50% in any given year. Long-term (10+ years), the broad stock market has been one of the most reliable wealth builders in history. Diversification through index funds reduces individual stock risk.

Probability of S&P 500 positive returns over different time horizons.
Probability of S&P 500 positive returns over different time horizons.

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. Read our disclaimers.

All questions

Get an answer built on your own numbers

Warren reads your accounts, then answers questions like this one with your real income, taxes and goals in mind.