6 in 10 Americans are invested in the stock market — a record high. But with $51T at risk in a crash, here’s how to prep

Group 1 - The stock markets have seen significant highs in 2025, with the Nasdaq Composite achieving 27 new highs, the S&P 500 24, and the Dow Jones Industrial Average 12 [1] - Experts are warning that these new highs may be followed by significant lows, posing risks to the 62% of Americans who own stocks valued at $51 trillion [2] - The current market value exceeds 363% of GDP, indicating extreme overvaluation according to the Buffett Indicator, which is significantly higher than the 212% seen before the dot-com bubble burst [3] Group 2 - Investment in AI is currently estimated to be 17 times that of dot-com stocks at the time of the bubble burst, raising concerns about market sustainability [4] - The majority of stock market gains in 2023 and 2024 are concentrated in the "Magnificent 7" tech giants, with Apple and Meta contributing over half of the S&P 500's gains [4] - AI stocks have reportedly doubled the returns of the overall stock market in 2025, indicating a potential sector risk if the AI investment frenzy diminishes [4][5] Group 3 - If year-end earnings fall short of expectations or if capital expenditure on AI infrastructure slows, current high stock valuations could decline sharply, impacting the economy and individual investors [5] - The "wealth effect" theory suggests that rising asset values can lead to increased consumer spending, which may be a concern if the stock market bubble bursts [6]