They will never tell you.
First of all, if you did take your money out, THEY, the mutual fund companies would lose all the fees.
Secondly, it’s not their responsibility to tell you when to take your money out. So they will never tell you in either good times or bad what you should do. That would be advice, and legally they are not allowed to give advice. They can only take your money and invest it. So whose responsibility is it? It’s your responsibility. But how would you know?
You probably would not know because that is how the 401k system works. In fact, you will most likely be the last one to know. That’s when it’s usually too late, and the bad news is already out.
Now if THEY were really trying to “protect” you THEY would put in bold letters the following:
“THE OUTCOME AND SUCCESS OF YOUR RETIREMENT INCOME IS YOUR RESPONSIBILITY. THE INVESTMENTS WE HAVE GIVEN YOU TO USE OF THE NESXT 40 YEARS MAY OR MAY NOT BE GOOD ONES. THE ASSURANCE OF A SECURE RETIREMENT INCOME IS NOT GUARANTEED. THERE ARE OTHER OPTIONS, BUT WE ARE NOT REQUIRED TO TELL YOU ABOUT THEM.”
Think about that statement for a few minutes if you are a 401k or IRA investor on Wall Street.
I rest my case.