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There’s a fine line between fear and optimism, between financial fact and emotion. The whipsaw headlines these days make it even more difficult to plan for your future and protect your finances.

It’s not your fault that your emotions may overwhelm your good judgment. No matter what your political persuasion, the sudden policy reversals are bound to impact market prices and your portfolio.

Suddenly, a new generation is learning that the stock market does not always go up, and that the downside is always faster and more fearsome than the bull market rallies. But the lessons of history tell us that the trend for America has always been upward — even through times of war and recession and inflation and political change.

If you can’t believe in the future of this country, through all its ups and downs, then it doesn’t matter what stock or bond you buy. Sadly, I’m hearing from too many people who have reached that stage of confusion. They are — understandably — ruled by fear of the future.

The U.S. dollar is the centerpiece of world financial transactions. For example, most global trade is priced in dollars, and oil is priced globally in dollars. The United States bond market has, since World War II, been viewed as the safest place to put your money. In times of crisis, global funds flow into purchases of Treasury bills, notes and bonds seeking safety.

Recently, that safety has been called into question. Instead of money flowing into the United States, it started flowing out. Even former Fed Chair and Treasury Secretary Janet Yellen called that a troubling reversal.

Instead of buying United States debt, it appeared that some central banks and global funds would start selling. That caused U.S. interest rates to move higher, in order to attract buyers of our debt. And the U.S. dollar, which is typically the “strongest” most sought-after currency in the world, declined against the Euro and other currencies. And against gold.

The most troubling consequence of our on-again, off-again policies is not domestic inflation or recession. It is the possibility that the United States will no longer be the trusted center of the global financial system.

After all, England once held that role, with the pound sterling as the center of global trade. And centuries ago Spain, with its riches from the New World, was the center of trade and finance. It is not ordained that a currency and a nation will hold its place at the center of commerce.

We live in a complex economy. Too many people are asking me if they should take their money out of the bank, hide it at home, or buy gold. Or have Bitcoin in a digital account. If our system breaks down, then paper money, digital currency or even gold coins will give you little solace if there’s no medicine to be had and bread disappears off the shelves. Just look at countries like Venezuela, Cuba or the old USSR.

The consequences are unthinkable. That’s why it’s time to calmly evaluate your finances. And why it’s time to hold our leaders of both parties to account. Make your voice heard — and make your money work sensibly for yourself.

History says that it’s never wise to bet against America. Prudence says it’s never wise to try to find the bottom of the market. But a long-term program of investing has always paid off in America.

There has never been a 20-year period — going back 100 years — when you would have lost money in a diversified portfolio of large-company stocks, such as the S&P 500 stock index, with dividends invested. Even adjusted for inflation. Why bet against the trend?

Your personal finances deserve your honest and careful attention. If the market has a long period of decline, you’ll need to figure out how much money you need to live on, even without stock market profits.

The decade of the 1970s was one such period, with the Dow falling below 600 in 1973, and still under 800 by 1982. It was a tough decade to be an investor. People gave up on the stock market, just before the greatest bull run in history, which has taken us up to Dow 40,000 — although with some scary declines in 1987, 2000, and 2007.

So set some money aside in bank CDs, money market funds and T-bills — all of which are “chicken money” havens, where you don’t get rich, but you don’t get poor! But don’t lose faith in the future. That has never been a winning bet. And that’s The Savage Truth.

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(Terry Savage is a registered investment adviser and the author of four best-selling books, including “The Savage Truth on Money.” Terry responds to questions on her blog at TerrySavage.com.)

©2025 Terry Savage. Distributed by Tribune Content Agency, LLC.