Been seeing a lot of chatter lately about whether we're heading into rough waters with the market. Can't blame people for being nervous -- the latest Pew data shows 72% of Americans are pretty pessimistic about the economy right now, and nearly 40% think things will get worse over the next year.

Here's what's interesting though. There are two major indicators flashing yellow lights that suggest the market might be stretched pretty thin at the moment.

First, the S&P 500 Shiller CAPE ratio -- basically a 10-year inflation-adjusted price-to-earnings measure -- is sitting around 40. That's the highest level since the dot-com bubble burst over 25 years ago. Way above the historical average of 17. And history shows us that when this ratio peaks, stock prices typically don't stay elevated for long. Back in 1999 it hit 44 right before tech imploded. It also spiked to around 193% in late 2021, just before the market entered bear territory.

Then there's the Buffett indicator. It measures total U.S. stock market cap against GDP. When it gets too high, it signals the market might be overvalued. Right now it's hovering around 219%. Warren Buffett himself said when this ratio approaches 200%, you're "playing with fire" -- he used this metric to call the dot-com crash back in the day.

Now, here's the thing. Nobody can actually predict when or if the market will crash. Even if economic trouble is brewing, we could still see months of growth before any real pullback happens. But that doesn't mean you should just sit around waiting.

The smartest move? Focus on owning quality companies with solid fundamentals. When volatility hits -- and historically it does -- stocks backed by healthy businesses tend to weather the storm better. Build a portfolio of companies you actually believe in, and you'll have a much easier time riding out whatever comes next. That's how you survive the rough patches and position yourself for real gains over time.