Why US boomers seriously need to prepare for a stock market crash before it’s too late 3 red flags and what to do now Vishesh Raisinghani Sat, August 15, 2026 at 5:15 AM PDT 6 min read ^GSPC Photo by Pixel-Shot / Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Noteworthy financial commentators, including Scott Galloway (1), Michael Burry and Ray Dalio , have compared current stock market conditions to those in 1929, 1987 and 1999 just before massive corrections. As of August 2026, the S&P 500's price-to-earnings ratio has jumped above 30, a level that was last seen "from late 1998 to the close of 2002 during the dot-com craze," according to Fortune (2). Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 and experts say most people won't act in time. What to do before the window closes Simply put, if you're feeling anxious about the stock market, you're not alone. And if you're a retiree who depends on market returns for withdrawals, this could be a good time to stress-test your portfolio. Here are three red flags that are worth resolving if you're trying to prepare for a potential market crash. Margin debt Ordinary investors are so confident about the market's recent boom that they've started borrowing money to invest even more. Margin debt exploded roughly 50% over the past year, going from $1 trillion to $1.5 trillion over the twelve months ended June 2026, according to FINRA (3). While leverage can magnify gains, it can also amplify losses when the market takes a bad turn. In retirement, this risk is particularly acute. This could be the right time to consider paying off any margin loans or reducing your exposure to leveraged ETFs. Minimizing debt could bolster your portfolio. Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going Overconcentration The stock market is already deeply concentrated. The ten largest companies in the S&P 500 (mostly familiar tech giants) now account for 40% of the index's total capitalization, according to UBS (4). The index "is more concentrated than at any point since the late-1990s tech bubble," says the investment bank's report. Simply put, if you've followed traditional advice and put much of your savings into low-cost index funds, you're now over-exposed to the AI and tech boom. A little diversification could help. Story Continues In 1999, the S&P 500 peaked and it took 14 long years to fully recover. Today? Goldman Sachs is forecasting just 3% annual returns from 2024 to 2034. It sounds bleak but...
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