Americans have more cash in stocks than ever, a ‘red flag’ for equities. Where to shift your money instead for 2026

Market Sentiment - Legendary investor Jim Rogers has sold all his U.S. stocks, indicating a bearish outlook, while Warren Buffett's Berkshire Hathaway has been selling large quantities of stock each quarter since 2024, raising concerns among investors [1][2][6] - A Bank of America survey reveals that 91% of fund managers believe U.S. stocks are overvalued, the highest level since 2001, suggesting a potential downshift in returns over the next decade [2][4] Stock Ownership Trends - Record levels of stock ownership in the U.S. coincide with increased risk of a market downturn, with 45% of Americans' household financial assets now in stocks, an all-time high [3][4] - Stock ownership has surpassed levels seen in the late 1990s, prior to the dot-com bust, raising alarm among economists [4][5] Market Performance Indicators - The "Buffett Indicator," which compares stock market performance to GDP, indicates that the market was at 230% of GDP in September 2025, suggesting potential overvaluation [6] - The S&P 500 has returned over 230% in the past decade, while the Nasdaq Composite has surged about 430% as of December 2025, reflecting a strong but potentially unsustainable market trend [3] Alternative Investment Strategies - Gold has gained 60% year over year and reached a record high of over $4,500 per ounce, with experts recommending it as a hedge against market downturns [10][9] - Real estate is highlighted as a productive asset class that can generate passive income even during market downturns, with platforms allowing investments in rental properties with minimal capital [12][14]