Ramit Sethi says Americans should be livid with Trump for ‘dramatic’ and ‘scary’ market crash — claims President just wants to exert control, make a mark. Here’s the guru’s emergency advice

Don’t panic

Losing money can be a painful experience and it’s tempting to consider cutting your losses while the stock market crashes. But Sethi recommends fighting that urge.

"Times like this are where people make bad decisions with life altering ramifications" he says. "It can be very tempting for people who even think they're disciplined investors to get scared and sell."

Trying to time the market during a rout, however, is rarely a good idea.

Hartford Funds analyzed stock market returns going back to 1995 and found that 78% of the best days on the stock market occurred either during a bear market or within two months of a bear market’s end. Selling stock and missing out on some of these “best days” could be detrimental to your portfolio's long-term performance.

This is why the best move is to patiently wait, hold tight, or even look for buying opportunities during moments of market panic.

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Build up a ‘war chest’

The ongoing stock market volatility seems to reflect investors’ concerns about the future of the American economy. In recent weeks, JP Morgan and Goldman Sachs have both raised their chances of a recession in 2025 to 60% and 45%, respectively.

To prepare for a potential recession, Sethi recommends bolstering your emergency funds.

“I'm building up a big war chest and I recommend you do the same," he says. "If you don't have an emergency fund, you better get your a-- in gear and get yourself one. That means cutting discretionary spending now before the world forces you to."

While most financial experts recommend saving three-to-six months’ of expenses in your emergency fund, Sethi says this scary economic environment justifies 12 months’ of expenses instead. “That’s the same recommendation I made during COVID,” says the 42-year-old.

A larger-than-usual emergency fund should help you prepare for not just a recession or a potential layoff, but also the added costs of essentials that are expected due to Trump’s tariffs on foreign imports.

Trump’s trade wars are expected to add $1,200 in annual costs for a typical American family, according to the Peterson Institute for International Economics. Since the study was published, the Trump administration has raised tariffs on several countries and added even more countries to the list of targets, so the actual costs could even be higher.

You can’t predict what comes next, but storing up cash and staying prepared should help you and your family stay afloat during this tough time.