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The U.S. stock market has surged to new highs recently — good news for investors, at least on the surface. But with Americans now holding more of their wealth in stocks than ever before, some economists warn that what comes next may be far less rosy.
John Higgins, chief markets economist at Capital Economics, says Americans’ stock ownership has even surpassed levels seen in the late 1990s — right before the dot-com boom went bust (1).
“That should ring alarm bells, even if the buoyant stock market keeps rising for a while amid enthusiasm for AI,” Higgins wrote in a note to clients, adding that “the current very high share of equities is a red flag to watch closely.”
According to Federal Reserve data cited by CNN, 45% of Americans’ household financial assets are now in stocks — an all-time high. That includes direct shareholdings as well as mutual funds and retirement accounts.
Even with periodic sell-offs — such as the sharp plunge in 2020 when the pandemic hit — the broader trend has been a powerful climb. Over the past decade, the S&P 500 has returned more than 230% (2), while the tech-heavy Nasdaq Composite has soared about 430% as of December 2025 (3).
Still, Rob Anderson, U.S. sector strategist at Ned Davis Research, points out that record levels of stock ownership have historically coincided with increased risk of a downturn.
“Investors shouldn’t expect the same magnitude of returns that we’ve seen during the last decade to repeat. Going forward, over the next 10 years, there’s probably going to be a downshift in returns,” Anderson cautioned.
And economists aren’t the only ones worried. A recent Bank of America survey found that 91% of fund managers believe U.S. stocks are overvalued — the highest reading in data going back to 2001 (4).
Even veteran investors are taking cover. Legendary investor Jim Rogers recently revealed that he’s sold all his U.S. stocks, warning he’s “seen this party before” (5). And Warren Buffett’s Berkshire Hathaway has been making other investors nervous since 2024 by selling off large quantities of stock each quarter (6).
And that’s not getting into the “Buffett Indicator,” which tracks stock market performance relative to GDP. The idea goes that when the stock market overperforms compared to the economy, it can indicate an overvaluation of market capital. The indicator sat at 230% of GDP in September 2025 (7).
If you’re concerned about where markets might head, here are four ways to help protect your wealth.
When investors start worrying about dark clouds over the market or slowing returns, gold often shines brightest.
The precious metal’s appeal is simple: Unlike paper money, gold can’t be printed at will by central banks. And because its value isn’t tied to any one country, currency or economy, it’s long been viewed as a safe haven — especially when markets lose their footing.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, recently highlighted gold’s importance in a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC. “When bad times come, gold is a very effective diversifier.” Dalio has advocated for up to 15% of a portfolio’s value to include gold.
The precious yellow metal has also been on a historic run this year, driven partly by shaky investor confidence in the stock market. Gold is up 60% year over year, and is on track to see even more growth in 2026. After a November slump, the spot price rallied yet again and hit a new record-breaking high of over $4,500 per ounce (8).
One method that some people use to invest in gold is a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
Like stocks, real estate has its cycles, but it doesn’t rely on a booming market to generate returns.
Even in a downturn, high-quality, essential real estate can continue to produce passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.
Legendary investor Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (9).”
Of course, you don’t need billions — or even to buy an entire property — to benefit from real estate investing. Platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes pre-vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
If you have capital on hand or existing real estate holdings, you could instead consider opportunities in commercial real estate. One way to do this is with First National Realty Partners (FNRP), which can help you access grocery-anchored commercial real estate properties.
With a minimum investment of $50,000, accredited investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, you can invest in these properties without worrying about tenant costs cutting into potential returns. This means the tenants take care of property taxes, building insurance and common area maintenance — plus base rent.
Even better, FNRP has closed over $2 billion in acquisitions with over $145 million distributed to investors.
It’s easy to see why great works of art tend to appreciate over time. Supply is limited, and many famous pieces have already been snatched up by museums and collectors. Art also has a low correlation with stocks and bonds, which can help with diversification.
In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (10). Historically, investing in the art world has been much like this: a privilege reserved for the ultra-wealthy.
But now, Masterworks can help you invest in shares of artworks featuring legends like Banksy, Basquiat, and Picasso.
And the best part? Masterworks has sold 25 works to date with net annualized returns like 14.6%, 17.6% and 17.8% among assets held for longer than a year.
Shares can sell quickly, but you can skip the waitlist and get started with investing today. Note that investing involves risk. See important Reg A disclosures at masterworks.com/cd.
Regardless of how you choose to invest, it’s important to acknowledge that everyone’s financial situation is different: From income levels and investment goals to debt obligations and risk tolerance. What’s right for someone else, whether Warren Buffett or Day Dalio, might not be the best one for you.
If you’re unsure about where to start, it might be the right time to get in touch with a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. They can help tailor a strategy to your unique financial situation, whether you’re looking to grow wealth, diversify beyond stocks or plan for long-term financial security.
Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNN (1); S&P Global (2); Google Finance – Nasdaq Composite (3); Bloomberg (4); Moneywise (5); Kiplinger (6); Current Market Valuation (7); GoldPrice.org (8); CNBC (9); Christie’s (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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