Suze Orman Exposes 6 Stock Market Truths Hidden Behind Trump Tariff Drama
Written by
Dawn Allcot
Edited by
Zuri Anderson
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The U.S. stock market took a wild ride last week, with major indices plunging 4% to 6%. Trump’s tariff announcements caused confusion and market volatility.
In a note Friday, Apr. 4, 2025, UBS Global Wealth Management chief investment officer Solita Marcelli predicted a “meaningful U.S. recession and lower equity markets,” according to CNN.
Finance expert Suze Orman remained a voice of reason, noting in a blog post published on Apr. 3: “I won’t tell you not to be fearful of the financial road ahead… But don’t make financial decisions out of fear.”
Here’s the rest of Orman’s advice in a nutshell.
‘Don’t Catch a Falling Knife’
Warning against “bottom-fishing,” Orman told YouTube viewers in her Women & Money show, “Don’t catch a falling knife.”
She suggested there will be plenty of time to get back into the market as it starts to turn around, but it won’t reverse course immediately. If you’re dollar-cost averaging, continue to do so, but with “tiny amounts,” according to Orman.
“This is not the time to be aggressive,” she said in a recent Facebook post.
She pointed out that, as always, the stock market is a long-term investment. Money that you’ll need within the next five years should not be tied up in stocks.
Don’t Sell When Stocks Become Volatile
Likewise, she also advised against panic-selling during the downturn. In her video, Orman pointed out that the Volatility Index (VIX) is the highest it has been since August 2024.
“If you have time on your side, I want you to sit back and relax — just watch what is happening here,” she said.
Invest in Dividend-Paying Stocks
If you’re tempted to invest, Orman listed dividend-paying stocks like AT&T and Verizon as companies to consider.
“When I look at my dividend portfolio… I’m only down half a percent from the beginning of the year and I’m getting a nice dividend,” she noted.
Make Sure You Have Enough Cash
For those who are close to retirement, Orman recommended having at least three years of living expenses set aside in cash, such as a high-yield money market account.
“That gives you time to ride out corrections and bear markets without having to touch your stocks,” she said in a blog post.
If you’re worried about a recession, having eight months to one year of living expenses set aside in an emergency fund can provide you with a sense of financial security.
Continue to Invest In Your Retirement Plan
“If you are contributing to a retirement account, do not stop… That consistency is your power,” Orman advised her followers in the same Facebook post.
Stick to a Diversified Investment Strategy
Above all else, Orman advised everyone to maintain a diversified investment strategy. In her YouTube video, she suggested that gold will be a safe haven. She reiterated across several platforms that dividend staying stocks are “safe and sound” and can help stabilize your portfolio.
“[J]ust stick with it. You need to not be angry… Short-term moves will hurt your long-term financial plans,” she urged.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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