This is evident from an exclusive study by MarketWise.
“Even as artificial intelligence-driven market gains continue to dominate headlines, 76 percent of U.S. investors say they worry about a downturn, and nearly half feel financially unprepared for a recession,” Jim Royal, a financial analyst and senior writer at the firm, told Investing News Network in an email.
“This kind of decoupling suggests that investors are capitalizing on performance momentum and bracing for volatility. This kind of setup often leads to sharper pullbacks when sentiment eventually turns.”
The survey was conducted on December 11, 2025. The responses, collected from 1,004 investors across different demographics, show heightened anxiety as recession fears persist.
Asset Allocation: Cash Rules, Crypto Shrinks
This emotional undercurrent manifests itself clearly in portfolios, where safety trumps speculation.
MarketWise’s research shows that cash still dominates, with 86 percent of investors participating with an average monthly allocation of $626. Fifty-five percent consider this the safest asset overall.
In stark contrast, crypto attracts only 35 percent of participants, while the monthly average is just $92.
“Crypto is no longer the ‘Wild West,’ but investor confidence has not caught up with regulatory clarity. Fifty-four percent of investors say crypto is the asset class they are most cautious about, and 56 percent see it as the most volatile, despite the expansion of reporting rules and oversight,” Royal said.
Gold and commodities generated optimism of 44 percent overall, while that percentage rose to 47 percent among millennials. This sentiment is in line with the metal’s recent record surge above US$5,500 per ounce on safe haven bids.
Shares remain broad with 69 percent participation, with an average monthly contribution of $320; However, caution prevails among 46 percent of respondents, who say they feel “anxious” about equities in 2026, mirroring 47 percent real estate wariness despite a 23 percent holding.
Generational anxiety gap
The fear of a recession is high: three-quarters of respondents expect a recession in 2026, while 46 percent admit that they are not ready for it. This number rises to 54 percent for those earning less than $75,000.
“Investor sentiment explains why panic-driven behavior continues, with 18 percent of investors reporting that doomscrolling has already forced them to make a hasty investment decision,” Royal said.
Forty-three percent of respondents predict that emotional investing will hurt their performance, while 45 percent have shut down mental health markets and 46 percent have let economic and geopolitical headlines influence their feelings.
“The mental strain of investing is becoming hard to ignore,” Royal added.
“Half of U.S. investors check their portfolios at least once a day (with 9 percent doing so five or more times a day), and 51 percent experience investment stress at least monthly.”
This is intensifying among young people. Sixty-one percent of Generation Z report acute investment stress, and 36 percent experience it daily or weekly, well above average. The fear of missing out, or ‘FOMO’, drives 17 percent of Gen Z’s decisions, with 42 percent overall influenced somewhat or often, highlighting impulsive trends among young people.
Meanwhile, 36 percent of Generation Z are planning safety shifts, compared to 29 percent overall. Millennials exhibit parallel vulnerabilities: 21 percent admit to doomscrolling panic, and 11 percent check wallets regularly.
“Even solid fundamentals can be drowned out by the headlines when investors are so emotionally fatigued, and of course discipline is key,” Royal explains.
Coping strategies lean toward rationality: 34 percent remind themselves that markets move in cycles, and 20 percent do more research to regain control. Older generations seem to be more reserved. Baby boomers and Generation
Market behavior reflects this concern: In 2025, Google searches for “stock market crash” saw 1.72 million searches, far surpassing searches for “bull market” at 262,000. “Crypto crash” racked up 392,000 hits, reinforcing the fear-driven sentiment of the study.
Takeaway for investors
With gold prices hitting record highs and the cryptocurrency sector lagging behind, MarketWise’s research proves that the real battle in 2026 is not the markets, but controlling the emotions that drive them.
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Securities Disclosure: I, Meagen Seatter, have no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of the Investing News Network and do not constitute investment advice. All readers are encouraged to conduct their own due diligence.
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