I think there is more to this market than just tariff uncertainty. The US has been seeing a growing gap in inequality and the lower classes are stretched thin. The longer this continues without a fix (and Trump ain't fixing that) then the bigger the issue becomes.
Coupled with the massive increases in stock market caused by retailer investors, sooner or later a lot of that money is going to get pulled out. The issue is so many of those investors bought ETF's (as did almost all of us i am sure).
ETF funds don't hold cash. When a customer withdraws their money from ETFs they have to sell those shares (worse if its a derivative ETF) which can cause a huge swing in stock prices.
I can see a huge swing sometime this year, ala 2008. Am i prepared to convert all my investments into cash? no. But Im currently at about 35% cash
|