Stock prices are on the rise, up 19% in the last 12 months, but concerns about a recession are growing. 80% of Americans are worried about an economic downturn. While it’s uncertain when a downturn will occur, it’s crucial to be financially prepared and avoid common investing mistakes.

Market anxiety is prevalent in times of instability, leading to panic selling. Attempting to time the market by selling high and buying low can be risky. Missing out on potential gains is a real possibility if you let fear dictate your investment decisions.

Despite predictions of a recession in 2023, the economy thrived, and the S&P 500 soared by over 25%. Market outcomes can be unpredictable, making it essential to focus on quality stocks from strong companies to weather any future market turmoil.

Investing in companies with solid fundamentals and experienced management teams is key to protecting your portfolio during market downturns. Avoiding overly hyped companies is crucial, as they may not withstand economic challenges as well as established businesses.

Researching investments thoroughly and focusing on companies with strong underlying fundamentals can provide peace of mind during market volatility. Long-term investment strategies built on quality stocks are essential for maintaining financial stability during uncertain times.

The Motley Fool is offering “Double Down” stock recommendations for three companies poised for growth. Historical data shows substantial returns for those who invested in past recommendations, emphasizing the importance of making informed investment decisions to maximize potential gains.

Read more at Yahoo Finance: Worried About a Stock Market Crash in 2026? Avoid This 1 Common Investing Mistake.