Suze Orman’s latest warning about the stock market has people talking. The famous money expert thinks we might be heading for trouble. She’s telling folks to be careful with their cash right now.
Orman recently shared her concerns on the “Fast Money Halftime Report” on CNBC. She believes we’re in a bubble that’s about to pop. “I think we’re in a bear market,” she said. That’s when stock prices fall for a long time, usually by 20% or more.
Why is she worried? Orman points to how stocks keep hitting record highs even when there are warning signs. The S&P 500 has climbed about 10% this year. Tech stocks have done even better, with the Nasdaq up around 16%. But Orman thinks these gains might not last.
She’s especially concerned about artificial intelligence stocks. Companies like Nvidia have seen their prices soar. Nvidia’s stock jumped over 40% this year alone! Orman warns these high-flying tech stocks could come crashing down.
“I believe that a lot of these stocks are way overvalued,” Orman explained. She’s worried people are buying stocks just because they’re going up, not because the companies are actually worth that much.
What should you do with your money during uncertain times? Orman has some straightforward advice. First, don’t panic and sell everything. That’s usually a bad move. Instead, she suggests having a solid emergency fund with 12 months of expenses saved up.
For your investments, Orman recommends dollar-cost averaging. This means putting small amounts of money into the market regularly instead of all at once. This strategy helps reduce risk when markets are shaky.
She also thinks dividend-paying stocks are smart choices right now. These companies share profits with investors through regular payments. They tend to be more stable when markets get rocky.
Orman isn’t the only expert seeing storm clouds. JPMorgan Chase CEO Jamie Dimon has warned about economic dangers too. He’s worried about inflation, interest rates, and global conflicts affecting markets.
But not everyone agrees with these gloomy predictions. Some experts point out that the economy still looks pretty good. Unemployment is low, and many companies are reporting strong profits.
Ryan Detrick from Carson Group offers a different view. “The economy isn’t showing any major warning signs of a recession,” he says. He thinks the current bull market could continue for a while.
What makes this tricky is that nobody knows for sure what will happen next. Even the smartest money experts sometimes get it wrong. That’s why having a plan that works in both good and bad markets is important.
For everyday investors, Orman suggests focusing on what you can control. Make sure you have enough emergency savings. Only invest money you won’t need for at least five years. And don’t try to time the market – that rarely works out well.
If you’re worried about a bear market, consider meeting with a financial advisor. They can help make sure your investment mix matches your goals and comfort with risk.
The bottom line: Suze Orman is warning that stocks might drop, but that doesn’t mean you should panic. Having a solid financial plan, emergency savings, and a diversified portfolio can help you weather any market storms that might be coming our way.
