In 2001 I felt the market was way too high and I parked my 401k money in a money market. Prevented a bunch of losses. Not as much as I could have, as I bought back in halfway down but overall it was pretty good move. I have not had anything close to that level of fear / concern until now. Thinking of doing something similar. Certainly not as extreme as moving every thing into cash but a significant portion. Currently about 90% in stocks
My concerns in no particular order include:
The war with Iran. I do not see any easy way to get out of that. Feels like that is going to hang over the world economy for years
Tariffs are screwing with the economy and international relations. Not likely to stabilize for 2 more years
Inflation and the federal reserve . Not sure what a rise in the fed rate will do to stocks but I think it's coming.
Social security. Can congress actually get their act together before a crisis. I am skeptical. I don't need it but lots of people do.
Federal deficit spending. See previous comment
Government inserting itself into more places. Company ownership, blocking mergers (see Spirit airlines), excessive regulation.
Data center construction feels like a bubble that is floating the economy.
PE ratios for stocks are way too high. Probably not a trigger of the market correction but could easily multiply the effect.
I think those are the biggest fears. Federal spending being the biggest. So any touchy feely thoughts?
UPDATE: Move 35% into cash a couple days ago. Hurt me to do it as I hate being a pessimist.