The 2025 stock market selloff could be a once-in-a-decade opportunity to build wealth

Now could be a great time to grow your wealth in the share market.

Happy young man and woman throwing dividend cash into air in front of orange background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

They say history doesn't repeat itself, but it often rhymes—and right now, the ASX is humming a very familiar tune. The kind seasoned investors know as a rare and powerful signal: opportunity.

After climbing to record highs in February, the ASX 200 has taken a sharp turn south, rattled by a mix of trade war fears, inflation concerns, and a general economic uncertainty.

But for long-term investors, this could be the moment they've been waiting for.

An opportunity awaits

We've seen this play out before. Whether it's the COVID crash of 2020 or the GFC of 2008, panic in the markets has a way of creating mispricing in quality ASX shares. The key is recognising the difference between structural problems and cyclical noise.

Analysts have been beating the same drum in recent weeks: in times like these, quality matters. Companies with strong balance sheets, consistent earnings, and sustainable competitive advantages are the ones that not only survive downturns—they thrive coming out of them.

We're talking about stocks like CSL Ltd (ASX: CSL), Goodman Group (ASX: GMG), Macquarie Group Ltd (ASX: MQG), and TechnologyOne Ltd (ASX: TNE) —companies that may not be immune to volatility but are battle-tested and built to last.

Bell Potter recently described the current volatility as a valuable window "to buy quality stocks at more reasonable valuations."

The long view with ASX shares

Let's zoom out for a moment. If you had invested $10,000 into ASX 200 in March 2020, just as COVID fears hit fever pitch, you would have almost doubled your money in the years that followed prior to the recent market selloff. And that's without trying to time the exact bottom.

Which brings us to the real takeaway: you don't need to call the bottom to come out on top. You just need to start.

Invest steadily, keep costs low (ETFs like iShares S&P 500 ETF (ASX: IVV) and Betashares Global Quality Leaders ETF (ASX: QLTY) are great starting points), and stay focused on the long-term. Because while we can't predict what the market will do tomorrow, history has shown that patient investors tend to win.

Foolish takeaway

The recent market selloff might not feel good in the moment—but one day, it could be remembered as the turning point where wealth was quietly built, one quality investment at a time.

Motley Fool contributor James Mickleboro has positions in CSL, Goodman Group, and Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Macquarie Group, Technology One, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL, Goodman Group, Technology One, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
How to invest

Rate cuts in focus: Why Warren Buffett says they impact every asset class

Buffett tells us that lower rates are good news for investors...

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
How to invest

When is the best time to sell ASX shares?

The best time to sell shares is never. But we need to be flexible.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
How to invest

Getting rich: Why Charlie Munger says the first $100,000 is both hardest and most important

Charlie Munger knew a thing or two about getting rich.

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
How to invest

Why it's a stock picker's market and how to maximise your returns

It pays to be selective in 2025.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
How to invest

How $500 a month in ASX shares could make you wealthy

Investing consistently could be the key to becoming rich in the future. Here's how.

Read more »

A woman in hammock with headphones on enjoying life which symbolises passive income.
How to invest

A new age: What safe-haven investments look like in 2025

Looking beyond the traditional definition.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
How to invest

How to earn $1,000 a month in passive income from ASX shares

Want a wage from the share market? Here's how to do it.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
How to invest

How to build a $250,000 ASX share portfolio by 2035

Here's how you could potentially reach $250k from zero in just a decade.

Read more »