Been seeing a lot of people worried about what could happen to markets next year, and honestly, the concern isn't unfounded. Latest surveys show 8 out of 10 Americans are at least somewhat anxious about a potential recession. The thing is, we can't predict exactly what the stock market crash will look like or when it'll hit, but there are definitely some red flags worth paying attention to.

Take the Buffett indicator for example. It measures total U.S. stock value against GDP, and right now it's sitting at 223% — a record high. Buffett himself has said when this ratio gets near 200%, you're basically playing with fire. Does that mean a crash is definitely coming tomorrow? Not necessarily. But it's smart to start thinking about how your portfolio would hold up if things got messy.

Here's what history teaches us: when the market crashes, not all stocks crash equally. During the dot-com bubble in the early 2000s, a ton of internet companies looked amazing on paper until they weren't. Their stock prices were flying, but many had shaky business models or couldn't actually make money. When the downturn hit, they got wiped out. Amazon's a perfect example — it lost about 95% of its value between 1999 and 2001. But here's the important part: it was a strong company with real fundamentals. Once it hit bottom, it exploded upward, gaining 3,500% over the next decade.

The lesson? When a stock market crash eventually happens, the companies that survive aren't the weak ones hiding behind inflated valuations. They're the ones with solid fundamentals — companies that actually make money, have manageable debt, and are led by people who know how to navigate tough times.

So what should you actually do right now? Start looking at the companies you own or are thinking about owning. Check their financial statements. Look at metrics like P/E ratios and debt levels. Think about whether they operate in industries that tend to hold up during downturns. Does the leadership team inspire confidence? These aren't glamorous questions, but they matter way more when volatility hits.

The reality is that downturns are inevitable — they always have been, they always will be. But the companies with real strength don't just survive them; they often come out stronger on the other side. That's why preparing your portfolio now, before any potential stock market crash, is probably the smartest move you can make.