Stocks are near all-time highs — but a new report finds 53% of Americans think investing is a ‘bad idea.’ How to protect your portfolio from a crash

"Currently, 33% of U.S. adults say it is a good time to find a quality job, and 63% say it is a bad time," Jeffrey M. Jones, long-time Senior Editor for the publication, wrote in the article. "When asked for their views on investing $1,000 in the stock market right now, more Americans believe it would be a bad idea (53%) rather than a good idea (43%)."

The findings arrive as recession fears quietly return to Wall Street and Main Street alike, fueled by persistent inflation concerns, rising fuel costs and growing uncertainty about the strength of the labor market.

Keeping in mind a theoretical range of -100 to +100, Gallup's Economic Confidence Index dropped to -38 this month from -27 in March, marking the lowest reading since late 2023 (2). Nearly half of Americans now describe current economic conditions as 'poor,' while 73% believe the economy is getting worse rather than better.

The survey was conducted amid heightened geopolitical tensions involving Iran, Israel and the U.S., which Gallup noted have disrupted shipping through the Strait of Hormuz and helped push oil and fuel prices higher.

At the same time, Americans are growing more pessimistic about other pillars of the economy.

"Most Americans continue to hold negative views of the U.S. economy," a February Pew Research Center report states, noting that about 38% of Americans expect economic conditions to be worse a year from now (3). It also says healthcare, food and consumer goods prices are among Americans' top economic concerns.

Sentiment itself can have a powerful effect on the economy (4). When consumers and investors grow anxious, spending often slows, businesses become more cautious and investors begin reassessing risk.

Recession fears shape investor behavior

In periods of heightened uncertainty, investors often reassess portfolio concentration as geopolitical shocks, inflation and volatility reshape market conditions (5).

"In environments of geopolitical stress, diversification is tested, and investors may need to think more wholistically about the assets included in their portfolio," Morgan Stanley Vice President Adam Swinney and Executive Director Gregory Liebl wrote in their May Insights report. "Diversification is supposed to be an investor's first line of defense."

That doesn't necessarily mean abandoning stocks altogether. Historically, some of the market's strongest rallies have occurred during periods of maximum pessimism.

Of note, the markets rallied after the 2008 global financial crisis, during the 2017 trade war incidents, after the 2020 pandemic lows and again after the 2022 bear market (6).

And on Thursday, May 14, 2026 the market rallied again. The Dow sat at 49.693.2, the S&P 500 at 7,444.25 and the Nasdaq at 26,402.34 (7). Those are some of the highest numbers we've seen in history (though the Dow is actually down slightly).

But finance professionals often caution against making emotional investment decisions based solely on headlines or short-term market swings. Vanguard calls diversification "one of the most fundamental strategies for building an investment portfolio focused on long-term growth," and notes "portfolio diversification is a key to long-term investment success (8)."

As such, many investors focus on diversification, risk management and long-term planning during uncertain economic periods.

A second opinion

For investors feeling uncertain about where markets may head next, speaking with a financial advisor can help clarify long-term decisions.

In fact, a survey by Unbiased found that 41% of Americans said financial advisors provide the most reassurance and trust when making financial decisions, even as 49% said they would feel too intimidated to seek advice (9).

A fiduciary financial advisor can help investors assess whether their current portfolio still aligns with their goals, risk tolerance and retirement timeline — particularly during periods of elevated market volatility or recession fears.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.

From there, WiserAdvisor reviews its network to match you — for free — with up to three professional, reputable advisors aligned with your specific needs.

Schedule a no-obligation consultation with your matches today to find the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

Looking beyond traditional assets

As recession fears and market volatility push more investors to reassess risk, some are looking beyond traditional stocks and bonds to secure their retirement.

For some retirement hopefuls, it might be a good idea to explore self-directed retirement accounts that allow exposure to a broader range of investments, including real estate, private businesses, private lending, precious metals and cryptocurrency (10).

Plus, it could come with tax advantages and greater control.

Self-directed IRAs have historically been used primarily by sophisticated or high-net-worth investors, but platforms like IRA Financial have made those strategies more accessible to everyday investors looking for additional flexibility in retirement planning.

IRA Financial gives you the freedom to invest in alternative assets like real estate, private equity, precious metals and crypto within a self-directed retirement account. And now you can add real-time, public market investing, powered by Interactive Brokers, a trusted global brokerage.

For the first time, you can manage both traditional and alternative assets seamlessly within a single self‑directed retirement structure, all for a flat fee.

Complete the application online in minutes to open your self‑directed retirement account with stock trading access powered by Interactive Brokers.

Seek assets less tied to public markets

Goldman Sachs projected the S&P 500 could deliver annualized returns of just 3% over the next decade, while Vanguard has forecast roughly 5% annual returns over a similar period.

Meanwhile, the S&P 500's valuation remains near levels historically associated with periods of elevated investor optimism.

For some investors, that combination of uncertainty and high valuations has renewed interest in alternative assets with historically lower correlation to public markets.

Post-war and contemporary art has long been one such asset class among ultra-wealthy investors seeking diversification beyond stocks and bonds.

More recently, platforms like Masterworks have made this market more accessible to retail investors by offering fractional ownership in works from artists like Banksy, Basquiat and Picasso.

Since 2019, more than 70,000 investors have joined the platform. Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.*