I've been seeing a lot of people worried about what's coming next for stocks, and honestly, the numbers are starting to back up those concerns. Just checked the latest surveys and about 72% of Americans think the economy is heading in the wrong direction right now. That's a lot of pessimism.

What's interesting is that when you dig into the actual market metrics, there are some pretty clear warning signs worth paying attention to. Two indicators especially stand out to me.

First, there's the Shiller CAPE ratio on the S&P 500. This basically looks at how expensive the market is compared to historical earnings adjusted for inflation. Right now it's sitting around 40, which is wild - that's the highest we've seen since the dot-com bubble burst over 25 years ago. The long-term average is only around 17, so we're talking roughly double the normal level. Every time this ratio has peaked like this in the past, we've seen pretty significant pullbacks. Back in 1999 it hit 44 right before the tech crash, and in late 2021 it was around 44 again before the bear market kicked in.

Then there's the Buffett indicator, which measures total U.S. stock market value against GDP. It's currently at about 219%, and that number should make you raise an eyebrow. Warren Buffett himself has said that when this hits 200% territory, you're basically playing with fire. He used this exact metric to call the dot-com bubble before it imploded. We're already past that danger zone right now.

Now, here's the thing - nobody can actually predict when a stock market crash is coming or if one will happen at all. The market could keep climbing for months even with these warning signs. But that doesn't mean you should ignore what the data is telling you.

If you want to protect yourself, the smartest move is focusing on quality. Build a portfolio around solid companies with real fundamentals, not speculation. Strong businesses tend to weather volatility much better than the rest, and they're what actually build wealth over time. That's how you survive whatever comes next without getting wiped out.

The key is staying prepared without panicking. These indicators suggest caution is warranted, but panic selling isn't the answer either.