Around three-quarters of investors are concerned that the stock market could be on track for a crash in 2026, according to a new survey.
Data from the investment research platform MarketWise shows that 76 percent of respondents said they were concerned about a potential downturn this year. Additionally, nearly half (46 percent) said they were unprepared for the possibility of a recession in 2026—a figure which rose to 54 percent among those earning under $75,000 per year.
“The data reflects the same cost pressures and job insecurity facing the broader economy,” Jim Royal, senior writer at MarketWise, told Newsweek. “Many people feel their financial safety net is thinning, and they aren’t taking risks. Instead, they pull back, sit on cash, and delay long-term decisions, which can amplify economic slowdowns.”
Why It Matters
The U.S. stock market had a robust year in 2025, with the S&P 500 recording an above-average return of 18 percent, after gaining 25 percent in 2024, according to Goldman Sachs. And with optimism surrounding U.S. economic growth and continued investments in artificial intelligence, many are forecasting another successful year for investors.
However, enthusiasm surrounding the AI investment boom and its impacts on American equities have been tempered with fears that a “bubble” could be forming in the market. Some analysts have warned that excessive confidence may be driving many recent gains—echoing the “irrational exuberance” which preceded dot-com bubble bursting—and that a major correction could be on the horizon.
What To Know
The MarketWise study – which surveyed 1,004 Americans online on December 11 – found that behavior in 2026 will likely be driven by “emotional response alongside market fundamentals.”
Among the central concerns raised, 54 percent of respondents said they were most wary about investing in cryptocurrency. Meanwhile, 47 percent said they felt optimistic about allocating funds towards gold—historically considered a “safe haven” during periods of economic and geopolitical turbulence.
Gold recently surpassed the $5,000-per-ounce milestone far earlier than some analysts had predicted, as tensions over President Donald Trump’s Greenland ambitions combined with prevailing fears about America’s fiscal stability.
MarketWiese also found that 46 percent of investors were swayed by geopolitical events, and that 12 percent stressed over their investments daily.
Some 29 percent of respondents said they planned to transition toward “safer” assets amid prevalent fears about the economy this year, rising to 36 percent among investors in the Gen Z age bracket.
Royal said the results signal that 2026 will be “defined less by aggressive risk-taking and more by defensive positioning.”
What People Are Saying
Royal told Newsweek: “Investing anxiety is already impacting decisions. Nearly three in ten investors say they’re actively shifting toward ‘safer’ investments, while crypto is now viewed as the most volatile asset by a majority. That tells us 2026 is likely to be defined less by aggressive risk-taking and more by defensive positioning (e.g., cash, commodities, and capital preservation), especially if economic and global headlines continue to drive day-to-day sentiment.”
What Happens Next
Analysts are currently expecting slightly weaker stock market gains in 2026 compared to 2025.
Goldman Sachs, in a forecast released earlier this month, anticipated a 12 percent return for the S&P 500 this year.
Meanwhile, Morgan Stanley has predicted a “near double‑digit” return for the index and set a target of 7,500—roughly eight percent higher than its current level.