Money guru Suze Orman warns investors in a special podcast recently that the current market downturn resembles a “falling knife.”
With markets experiencing significant volatility due to international tariff tensions, Orman offers timely guidance on how investors should respond.
“This feels a lot like 2022 where it’s volatile, emotional, uncertain,” she noted.
Times like these highlight the importance of having professional guidance through turbulent markets, especially if you’ve built significant savings over the years.
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1. Don’t “bottom fish”
Orman strongly cautions against aggressive buying during this market downturn, warning investors not to try “bottom fishing.”
While dollar-cost averaging remains a viable strategy, she recommends doing so with “seriously tiny amounts” only. The market’s rapid decline means there will be plenty of time to enter positions as conditions stabilize.
During such uncertain times, diversifying beyond traditional stocks and bonds can help protect your portfolio.
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Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.
2. Continue retirement account contributions
“If you are contributing to a retirement account, especially an employer retirement account, I am begging you not to stop your monthly contributions,” Orman emphasizes. Consistency remains your “power” and “secret weapon” during market volatility.
This advice is crucial for investors who want to grow their money over longer time horizons of 5, 10, or 15+ years.
Regular contributions allow you to buy shares at lower prices, potentially benefiting your portfolio over the long term.
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3. Hold steady and avoid emotional selling
When volatility is this high, Orman notes that “fear is overwhelming logic.” Historically, such an extreme fearful sentiment indicates it’s not the time to sell.
Markets may experience temporary bounces even within downtrends, but reacting emotionally to these movements typically leads to poor outcomes.
Remember that money invested in the market should be funds you don’t need for at least five years.
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4. Consider Roth conversions now
Market downturns present a strategic opportunity for Roth conversions.
Since you pay taxes on the amount converted based on its current value, converting traditional retirement accounts to Roth accounts during market lows can mean paying less in taxes.
Consider gradually implementing this strategy, converting small amounts to take advantage of depressed asset prices.
This type of tax strategy is one area where professional guidance can be particularly valuable.
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5. Focus on dividend-paying stocks
Dividend stocks can help stabilize your portfolio during market turbulence.
Orman revealed her dividend-focused holdings were down only 0.5% year-to-date at the time of recording, significantly outperforming major indexes.
She mentioned that companies like AT&T and Verizon have “held up pretty well” during the recent volatility while continuing to provide income through dividends.
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6. Consider gold as a safe haven
While many alternative investments have faltered during this market downturn, gold has proven its worth as a traditional safe haven.
Unlike cryptocurrency, which hasn’t maintained its value well during this particular period of market stress, gold continues to demonstrate its historical role as a hedge against uncertainty and currency weakness.
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7. Look into refinancing opportunities
With the 10-year Treasury yield falling below 4% (approximately 3.8% at publish date), mortgage rates may also trend lower — since they often move in the same direction. Orman suggests homeowners consider refinancing “sooner than later” to lock in a potentially better rate before markets shift again.
One reason Treasury yields are dropping is a weaker economic outlook. That downward pressure can create refinancing opportunities for homeowners still carrying higher-interest mortgages, especially before lenders adjust rates upward again.
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8. Reconsider European travel plans
Orman points out that the dollar is currently weak, making international travel, especially to Europe, more expensive than usual.
“If you’re thinking about traveling to Europe or doing things like that, now is not the time,” she advises.
Currency fluctuations can significantly impact vacation budgets, and waiting for more favorable exchange rates could save considerable money on international trips.
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Stay courageous, not fearful
Taking the right actions from “a place of courage, not fear” and “a place of power, not weakness” can help your money grow during challenging times.
Orman encourages investors to approach the current market situation one day at a time while maintaining both financial discipline and emotional resilience.
By following these strategic recommendations and avoiding panic-driven decisions, investors can navigate this turbulent period while positioning themselves for eventual recovery.
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