Dire warnings emerge as 'frothy' stock market hits record highs - and fears millions of 401(K)s could be affected

Experts are sounding the alarm over the stock market's 'frothy' conditions - predicting a sharp downturn after 2024's extraordinary gains. Five leading Wall Street analysts told CNN they foresee a possible bear market in 2025 - a decline of 20 percent or more - following last year's record highs. Mark Zandi, chief economist at Moody's Analytics said the market is 'bordering on frothy' Experts have issued dire warnings of a severe stock market drop in 2025 However, there are concerns from some experts that these stocks - which include Nvidia, Apple, Meta, Microsoft, Tesla, Alphabet and Amazon - now have an oversized bearing on the index's success. Kristina Hooper, chief global market strategist at Invesco, said there could be a market drop There are concerns from some Wall Street analysts that stocks are overvalued David Kelly chief global strategist at JPMorgan Asset Management agreed, arguing there is a 'danger' that such high valuations are leaving financial markets vulnerable. The S&P 500's last two-year total return including dividend came to 58 percent David Kelly chief global strategist at JPMorgan Asset Management, said high valuations are a 'danger' Ed Yardeni, president of investment advisory Yardeni Research, said a lot depends on the new administration According to UBS, key bubble indicators include declining corporate profits, heavy participation by retail investors, and a significant time gap - at least 25 years - since the last major bubble.