Legendary investor Warren Buffett sat in a record $334 billion in cash, but he didn’t say his cash position was so big. Hedge fund manager Steve Cohen recently said the Trump administration’s tariffs and the massive budget cuts from the Elon Musk administration’s efficiency ministry could be bad for the economy and stock markets. When both the best investors in the world and one of the world’s top traders seem to be cautious, maybe it’s time to take notice. Buffett did not bring any clear reason to Berkshire Hathaway’s record cash hoard in his annual letter to shareholders. But you don’t have to be legendary financier Bernard Baruch to make sure that hiding cash is not the most bullish sign. Warning signs are that the bear case has been a while since cautious investors have been urging previously to point out many warning signs flashing in the market: noble valuations reduce the highly concentrated returns of a few Mega-Cap stocks in market breadth AI uncertainty over the irrational concerns about uncertainty in monetary and fiscal policy commitments, fears of trade relations and geopolitical risks surrounding the imminent problems of government funding continue to increase federal deficits and national debt, a common saying , that is, the “wall of worries” of the rising stock market, the obvious pessimism is the opposite indicator. But, in addition to Buffett and Cohen, individual investors and self-guided businessmen have been investing money into stocks at a relatively brisk pace lately. This shows that the public is still very optimistic about the outlook for U.S. stocks. As I wrote in December, it is not unwise to take the table with some chips. It’s a prudent thing to trim your own portfolio, especially after two years of considerable gains. I also suggest that tactical traders may want to swap some U.S. indexes for their European counterparts earlier this year. Despite concerns about the EU’s economy, its relationship with the United States, and ongoing geopolitical risks associated with Ukraine, European markets are still surpassing the S&P 500 S&P 500 and Nasdaq Comprehensive Materials. Indeed, the Stoxx European 600 index grew nearly 9% in 2025, while the S&P 500 index was more than 2% ahead of schedule. .STOXX .SPX YTD Line STOXX Europe 600 and S&P 500 for domestic political issues in 2025 may also have an impact on the U.S. financial markets soon. NBC News reported that some House Republicans have been enriched from voters who are following Elon Musk’s attempt to overhaul various federal agencies. Large-scale shooting and vacationing poses economic risks. Assuming that the buyouts offered to a group of federal employees are limited, the unemployed claim may jump. Overall employment situation may make the U.S. economy seem to be inclined to recession, and consumers are increasingly worried about inflation. Even if some economists have raised this possibility, the most certain scattered scenario—that is, the combination of high inflation and stagnant economic growth—is not in the market. In short, it may be time to buy dipping sauce with caution, as it is taught to do. Rather than buying dips, it might just be time to sell the rally. – CNBC contributor Ron Insana is CEO of artificial intelligence company Ifi.ai.
Market risks are rising, maybe it’s time to sell the rally | Real Time Headlines
RELATED ARTICLES