Markets Are Crashing. Inflation Is High. What Should You Do With Your Money Now?

If it feels like the world is becoming more chaotic and unpredictable, you’re not alone. Geopolitical tensions, macroeconomic instability, and social upheavals are all converging, creating a perfect storm of financial uncertainty. Nations once considered economic allies are now rivals. Rising geopolitical friction, particularly in the Middle East—alongside persistent inflation, elevated interest rates, and the reintroduction of trade restrictions and tariffs, are all contributing to a turbulent global landscape.

In recent weeks, global markets have experienced significant declines, wiping out value in retirement accounts and investment portfolios. Many people are left staring at their 401(k) balances, wondering: How can I stop the bleeding? Should I stop investing altogether? Should I pivot to another asset class? Is real estate a safer bet right now? How do I protect myself financially and personally during such unpredictable times?

Here are three core principles to help you weather the storm:

1. Don’t Panic

First, understand that this sense of chaos is nothing new. The world has always felt uncertain—and it always will. The catalysts may change—from the COVID-19 pandemic to the Russia-Ukraine war, Middle Eastern tensions, and global trade disputes—but the feeling of instability remains a constant.

Economic cycles are a natural part of life. These cycles consist of periods of expansion (low unemployment, rising wages, and strong markets) and contraction (job losses, falling investment values, inflation, or even recessions). Over the last 50 years, we've experienced numerous downturns. While the causes differ, the pattern is consistent. Understanding this helps us beat fear and worry and respond with calm

2. Don’t Jump Off the Train

Like a roller coaster, the financial markets have ups and downs—but the only people who get hurt are those who try to jump off mid-ride. It’s tempting to pull your money out of investments during a downturn, pause your 401(k) contributions, or switch strategies out of fear. But history shows that those who panic and sell during a decline often lock in their losses and miss out on the recovery. Also true is that the greatest wealth creation often follows periods of recession. Staying the course—especially with long-term investments—can be a powerful strategy. Avoid reactive decisions. Instead, maintain a steady, informed approach that positions you for future growth.

3. Plan for the Downturn

The best way to navigate uncertainty is through preparation. That means diversifying your investments, building a financial safety net, and continuously upskilling to remain adaptable in a shifting job market. If you're already in the midst of a downturn, prioritize saving cash by reducing discretionary spending and cutting back on non-essential expenses. The money you save now can become the capital you deploy when markets begin to recover—putting you in a strong position to capitalize on future opportunities.

While the current chaos and uncertainty can be unsettling, it doesn’t have to be paralyzing. With the right mindset, strategic planning, and a commitment to long-term thinking, you can navigate this chaos—and come out stronger on the other side.