The U.S. stock market has experienced a substantial decline, losing approximately $5 trillion in value over the past three weeks. This downturn has raised concerns about the exposure of American households to potential market sell-offs. As of the end of 2024, U.S. households held a record $38 trillion in listed equities, which represents 170% of disposable income, significantly above the long-term average. Analysts suggest that this high level of stock investment could distort market valuations and increase the risk of a recession. Reports indicate that more than $4 trillion in stock market value has evaporated since Donald Trump took office, adversely affecting retirement accounts for many nearing retirement age. Experts warn that the current market conditions could lead to a feedback loop where further sell-offs trigger deeper economic issues.