We talked to 2 retail investors who dumped stocks in response to Trump uncertainty. They told us why they have no regrets.
From Yahoo Finance: 2025-05-24 15:00:00
Retail investors are divided on whether to buy the dip or increase cash allocations amid market volatility in 2025. Angelo Sibilio and Matt White have chosen to de-risk their portfolios by moving to Treasurys and cash, avoiding panic selling and dip buying strategies.
Sibilio and White’s cautious approach reflects a broader mistrust of rapidly changing narratives from Wall Street. Sibilio plans to hedge his portfolio with a half-cash allocation indefinitely, waiting for more policy certainty and consumer sentiment before fully re-entering the market.
Goldman Sachs and JPMorgan have lowered their recession forecasts following the US-China trade deal, but White remains cautious and sees increased cash as a buffer against potential downturns. The uncertain market environment prompts him to keep cash on hand to minimize risks.
While a defensive strategy of holding more cash can be beneficial during market uncertainty, experts advise against cashing out for long-term investors. Dollar-cost averaging and staying invested are recommended to avoid missing out on potential market rebounds and long-term growth.