Americans’ stock holdings are at an all-time high, leaving many vulnerable to a market downturn. 45% of American households’ assets are in stocks. Record highs and retirement plans contribute to increased stock ownership, but experts warn of economic impact. High stock ownership increases market influence and risk of downturns.

Increased stock market engagement may distort economic data and consumer spending. Investors should not expect past returns to continue. Market gains can boost spending, but a market slowdown can quickly impact spending and economic confidence. High stock exposure increases economic risk and potential downturn impact on household spending.

Experts warn that Americans’ high stock holdings could lead to economic distortion and increased market risk. High stock ownership levels may lead to decreased returns over the next decade and impact household spending. Market gains can drive consumer spending, but a market downturn could quickly reverse this trend and impact economic confidence.

Read more at Yahoo Finance: ‘There Is A Bigger Risk,’ Why Americans’ Stock Holdings Have Some Economists Worried