Suze Orman Says 'Nothing Is Normal' in Today's Stock Market. What Should You Do With Your Portfolio?

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Here’s how to navigate these tricky times.

Key points

  • Financial guru Suze Orman says today’s stock market isn’t normal, and is extremely frustrating for a lot of people.
  • It’s important to manage your portfolio carefully during these challenging times.

“Nothing is normal.” That’s what Suze Orman recently admitted on her podcast when discussing the state of the U.S. economy and stock market.

It’s very easy to see why she’d say that. Stocks have had a miserable year, and now a lot of investors are seeing losses in their brokerage accounts compared to where their balances sat at the start of 2022.

Meanwhile, wild levels of inflation are wreaking havoc on many people’s budgets. And the problem could get worse before it gets better.

Clearly, these are not easy economic times to navigate. But it’s important to not act irrationally at a time when nothing is normal. With that in mind, here are three tips for managing your investments right now.

1. Don’t sell losing stocks in a panic

If you log into your brokerage account and see that most of the stocks you own are down for the year, your first instinct may be to sell them — before things get worse and you risk losing more money. Don’t do it.

Right now, the loss you’re looking at is simply a loss on screen. Or, to put it another way, it’s a hypothetical loss. But if you sell investments when they’re down, you’ll turn a hypothetical loss into an actual loss.

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Ideally, the money you have in stocks isn’t money you need right away (all of your emergency fund cash should really be tucked safely away in your savings account). So the best thing to do right now is sit tight and leave your existing investments alone.

The stock market has a long history of recovering from downturns, and there’s no reason to think investment values won’t come back up from where they are today. It may just take some time to get there.

2. Look at purchasing I bonds

While inflation may be causing consumers a world of undue stress, there’s one investment option that lets you take advantage of high levels of inflation — I bonds. I bonds are government-backed securities whose interest rate is tied to inflation. Since inflation is very high right now, I bonds are paying a lot of interest.

Suze Orman actually says that right now, I bonds are the best investment you can make. And you can purchase up to $10,000 worth per year. If you have money that isn’t tied up in other assets and that you don’t need for emergencies, it could pay to invest in I bonds.

3. Take advantage of discounted stocks

Since the stock market is down as a whole right now, you may have an opportunity to buy shares of the companies you believe in at a discount. If you have extra money at your disposal, that’s an option worth looking at.

Clearly, these aren’t normal economic times. But it’s important to try to keep your cool and not make any rash decisions regarding your portfolio. At the same time, you may want to take advantage of other investment opportunities that could make you wealthier down the line.

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