Market Crash 2025? Experts Weigh In on What You Should Do Now (2025)

Markets are hitting unprecedented highs – but is a catastrophic crash lurking just around the corner? In an era of soaring stock prices and jubilant investors, the question of impending doom feels impossible to ignore. As we stand on the edge of potential financial upheaval, let's explore whether you should gear up for a market meltdown, with insights straight from the experts' playbook.

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Opinion

October 19, 2025 — 5.00am

Since 2023, as the globe shed the remnants of the pandemic, economies regained momentum, and interest rates started climbing sharply, global markets have enjoyed a relentless upward trajectory. Yet, amid this ascent, we've seen a barrage of cautions about an impending slump, including warnings from none other than Warren Buffett, the legendary investor known as the 'Oracle of Omaha' (https://www.firstlinks.com.au/warren-buffett-preparing-bear-market). Predicting market movements is notoriously tricky, much like trying to determine the length of an endless rope or the price of a whimsical puppy in a shop window. Still, that hasn't deterred us from delving into the possibilities.

And this is the part most people miss – what actionable steps can you take?

To tackle this head-on, we've consulted a lineup of financial experts and money mavens to address two pivotal queries: Is a market crash imminent, and how should you respond?

Not over yet: Hold off on pulling the plug just yet, advises Tim Murray, a capital markets strategist at T. Rowe Price. He anticipates that stock markets will maintain their climb through the remainder of this year and possibly into the next, driven by increased government spending worldwide, the gradual effects of central bank policies taking hold, and a rapid uptick in artificial intelligence investments. However, like a delicately balanced stack of cards, one misstep could trigger a collapse. Murray emphasizes that with current stock valuations at stretched levels, any weakening in economic fundamentals amplifies the risk of a sharp downturn significantly. Plus, heightened international tensions create more opportunities for unexpected setbacks. He suggests keeping your investments in stocks but diversifying wisely, perhaps by including some less risky options like gold or short-term government bonds – think of gold as a stable anchor during stormy seas, providing potential protection against inflation or currency fluctuations.
Slowing down: Billy Leung, senior investment strategist at Global X, predicts not a halt in growth, but a deceleration from the breakneck pace of record highs that have defined 2025. As he explains, global markets are transitioning into a phase of more measured expansion, where the exceptional profit growth of recent times returns to normal levels. Over the coming year, expect a focus on interest rate reductions and moderated company earnings, with investors pivoting from chasing quick gains to seeking steady returns. In light of this, Leung recommends tilting your portfolio toward businesses offering reliable dividend payments, such as established utilities or consumer goods companies that pay out a portion of profits regularly, helping to provide income even in slower times.
A dangerous time: Hugh Selby-Smith, co-Chief Investment Officer at Talaria, describes the current market environment as feverishly unstable, with some participants ignoring the perils of low liquidity in assets. Referring to the US scene, he notes a pervasive belief that federal intervention will shield against catastrophe, likening it to dancing on thin ice with a safety net below. This complacency is exacerbated by market 'peer pressure,' where fear of missing out (FOMO) compels hasty decisions. Selby-Smith urges focusing on mature, financially sound corporations that can endure storms – for instance, blue-chip companies with robust cash reserves and minimal debt, which have historically weathered recessions better than speculative startups.
Don’t worry about it: Last but not least, Noel Whittaker, a veteran Money columnist and esteemed financial advisor with nearly five decades of experience, addresses this perennial concern. In his view, for the average person, fretting over a crash isn't necessary. Adopt a long-term perspective and embrace the natural ups and downs of markets. As Whittaker points out, in Australia, roughly six out of every ten years in a decade tend to be positive, leaving four for declines – so volatility is just part of the landscape. Avoid attempting to predict market timing, as it's futile; instead, remain committed to your investments over time, maintain accessible cash reserves to weather tough periods, and ensure you're never pressured into offloading assets at a loss. Imagine treating your portfolio like a marathon, not a sprint, building resilience against short-term hurdles.

Now, here's where it gets controversial – should governments really bail out markets, or does that just encourage reckless behavior? Some argue that such safety nets distort true market signals, potentially leading to bigger bubbles down the line. What do you think? Is it time to rethink how we approach investing in an AI-driven world, or are we overreacting to temporary blips? Share your thoughts in the comments – do you agree with the experts' advice, or do you have a counterpoint that challenges the status quo?

The guidance provided here is broad and not tailored to individual situations. It shouldn't sway your investment choices or product selections. Always consult a qualified financial advisor who considers your unique circumstances before taking any steps with your money.

Market Crash 2025? Experts Weigh In on What You Should Do Now (2025)

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