I get what you're saying. And you're probably right, my passive strategy is probably ok as it is. However, in 2007 the US stock market dropped by about 50% and stocks were indeed a worry while my employment remained relatively stable.
I sorta worry about a sovereign default cascade in europe with similar effects on stocks as the financial crisis of 2007. I'm not sure if trying to hedge for this is worth the premium though.
I always chortle when people say stocks fell 50%. If a house is selling for a trillion dollars, and it falls back to a million, would you be surprised? No.
Well then, if the market is overpriced by 100% and it falls 50% - why would you be surprised or worried. If the market continued to crash - you would be unemployed - as domestic consumption cycled down. We'd either end up like the Japanese or the Germans - either way - we'd all be fucked.
I sorta worry about a sovereign default cascade in europe with similar effects on stocks as the financial crisis of 2007. I'm not sure if trying to hedge for this is worth the premium though.