This Money Expert Is Sending Warning Signs About the Economy — and How To Protect Yourself
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Josephine Nesbit
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Amen Oyiboke
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Several money experts have sounded the alarm, warning that today’s economy isn’t as strong as some headlines suggest. Although the stock market continues to hit record highs, those gains are concentrated among a small group of companies, according to financial influencer Jaspreet Singh.
But that’s not all. The average American, Singh said, is slowly becoming poorer as prices rise due to inflation and the job market continues to slow down due to artificial intelligence.
Here’s what Singh has to say about the economy and what you can do to protect yourself.
Only a Few Companies Carry the Stock Market
“The news keeps talking about how corporations are seeing record profits, which is helping the stock market break new record highs,” said Singh in his YouTube video. “But we’re actually seeing a divergence here where a few select companies are carrying the market while the rest of the stock market is actually slowing down.”
More specifically, Meta, Alphabet, Amazon, Apple, Microsoft, Nvidia and Tesla — collectively known as the “Magnificent Seven” — grew earnings by about 14.9% in the third quarter of 2025, Singh said.
By comparison, the other 493 companies in the S&P 500 grew earnings by just 6.7%. While the Magnificent Seven are growing much faster than the historical 10-year average quarterly growth rate of 9.2%, the remaining companies are growing significantly more slowly.
While the Magnificent 7 are growing much faster than the historical 10-year average quarterly growth rate of 9.2%, the other 493 are growing much more slowly.
The Broader Market Is Falling Behind
The concern isn’t that some companies are outperforming others, Singh explained. The warning sign is that most of the market is growing more slowly than usual, while just seven companies are propping it up.
“These seven companies by themselves make up around 33% of the entire value of the S&P 500,” Singh said. “And this is where things start to become risky because if one of these seven companies doesn’t do good, not only is it bad for that company and those employees, but now it could bring down the entire stock market because it has such a big weight relative to the general stock market.”
J.P. Morgan predicts that the Magnificent 7 will see roughly 20% earnings per share (EPS) growth in 2026, a faster rate than the S&P 500’s 13% to 15% EPS, as reported by Forbes.
Easy Money Is Inflating Risk
Another concern Singh raised was whether we’re in a stock market bubble, since only a few high-valuation companies drive the market.
“But we’re actually now starting to inflate this bubble rather than deflate this bubble,” Singh said.
This is because the Federal Reserve is cutting interest rates, making it easier to borrow money. “Generally, lower interest rates don’t pop bubbles; they inflate bubbles,” he added.
And at least two more rate cuts are likely in 2026, Mark Zandi, Moody’s Analytics chief economist, said on CNBC’s “Squawk on the Street.”
Singh also pointed to the Federal Reserve’s shift away from tightening monetary policy as another factor adding risk. In December, the Fed ended quantitative tightening, which encourages banks to lend more and investors to take on additional risk.
Easier money tends to push investors toward growth-oriented and more speculative assets, especially when borrowing becomes cheaper. This can drive prices higher, Singh said.
The concern, Singh explained, is that investors are now paying premiums for a small group of companies based on expectations of continued rapid growth. If those expectations fall short, it could trigger a sell-off.
“If that sell-off happens, not only is it bad for that company, but because these companies have such a high weight in the overall stock market, it could bring down the entire stock market,” Singh said.
High Expectations Leave Little Room for Error
Much of today’s market pricing assumes continued growth, especially now with artificial intelligence. Investors are paying higher valuations based not on current earnings, but on expectations that profits will continue to grow.
Singh warned that this leaves little margin for disappointment. If growth slows or earnings come in below expectations, even solid results may not be enough to justify current prices, and investors could pull back.
Because a small group of companies now holds such an outsized share of the market, any pullback could have a big impact.
How To Protect Yourself
Singh offered two strategies for investors:
Always Be Buying (ABB)
According to Singh, this is one way you can always win as a passive investor. “If you’re going to be investing in these passive funds, set up a system where it’s every week, every two weeks or every month. Money gets pulled out of a checking account and it’s automatically deposited into these funds,” he explained.
And this should continue no matter what’s happening in the market.
Be (Partially) Active
“Active investing is not trading, but this is investing in individual companies. Now, this takes more work, more time, more risk, but it also has more potential upside,” Singh said.
And the reason he suggests this is that if you want to build more wealth, you need better returns on your money. “And you’re not going to get any higher returns unless you’re taking on at least a little bit more risk,” he added.
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