Hedge Funds Bet Billions Against US Stocks, Risking 401(k)s

Hedge funds are making significant multi-billion-dollar bets against the US stock market, indicating expectations of a potential market crash that could severely impact American retirement savings. According to Goldman Sachs, throughout January, investors placed ten times more bets on stocks falling than rising, reflecting a dramatic shift in sentiment following a substantial $600 billion loss in major tech stocks. The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, have all faced considerable declines. This shift comes after a phase where hedge funds were optimistic about Trump's presidency, anticipating a booming market fueled by tax cuts and deregulation. Now, as these funds pivot to betting against the economy, analysts warn that the fallout could endanger the financial futures of millions of American workers reliant on 401(k)s and pensions. The upheaval highlights the volatility and uncertainty surrounding Wall Street's future under Trump's leadership.