Move 401(k) to Cash in a Recession? Here's What Experts Say

Move 401(k) to Cash in a Recession? Here’s What Experts Say

A person with dark hair sits in a dimly lit room with a red hue, their hand on their forehead in a gesture of stress or concern. They are looking at a computer monitor which prominently displays a red candlestick chart showing a steep and prolonged market decline. A keyboard, mouse, and other desk items are visible in the foreground, all bathed in the reddish light.

Some pundits and skeptics have long voiced doubts about the S&P 500’s ability to deliver a third straight year of blockbuster gains. Wells Fargo senior global market strategist Scott Wren set a 2025 year-end target of 6,600 for the index. As it turned out, the S&P 500 posted a total return of 17.9% in 2025, capping three consecutive years of double-digit gains and proving the bears wrong again. Here is what experts say about moving your 401(k) to cash in a recession.