CBS finance expert Jill Schlesinger, while she tends to give solid advice on dealing with stock market turmoil, still can't compare with the WSJ's Jason Zweig. Thus it was I came across his timely column, 'How To Think Clearly In a Time Of Panic' in the WSJ Business Exchange section 2 days ago. And like previous forays, he did not disappoint, advancing a pyramid- 'layer' approach to deal with Trump's Tariff havoc. This approach originally conceived by Jonathan Treussard of Treussard Capital Managment.
Treussard lays out the layers in a pyramid form i.e.
"In the bottom layer are the decisions you take now you are extremely unlikely to regret later."
These would be like the advice I wrote about two days ago, when I advised our extended family - the set ready to retire in 1-2 years - to pull money from whatever stocks (especially tech) and put it into safe havens (i.e. cash, money markets).
Jason also adds to this actions like:
Tightening your family's budget, spending less and saving more. Also seeing (from tax advisor) which stocks and funds now worth less can be turned into a loss. As Mr. Zweig frames (ibid.)
"By selling and putting the proceeds into a low cost diversified fund, you can cut your tax bill, lower your risk and maintain your exposure at today's newly cheaper prices."
This is such terrific advice one wonders how may stock holders have done it yet.
At the mid or second layer of his pyramid are "those actions you may someday regret - which are bigger decisions."
As Jason elaborates:
"Consider taking your stock or fund dividends as cash rather than reinvesting in more shares. This extra liquidity can give you a psychological cushion against further losses. If the S&P 500's drop has you spooked move some money into international stocks."
But he warns, before going to the 3rd or top layer of the pyramid:
"Only after you've exhausted the bottom and mid layer of the pyramid- says Treussard - should you consider the top layer."
And what, pray tell resides in this top layer that we're warned to postpone until last?
"This consists of risky decisions like dumping all your stocks or betting big on a rebound."
Ok, one thing I wouldn't do is bet big on any rebound given as The Financial Times' Edward Luce notes (in his Tuesday column - ) Trump can no longer be considered sane. I.e. Writing:
"The merest rumor he might be sane can trigger a buying frenzy”
So are you really going to bet big on the gibberish spouted from the piehole of an insane orange fruitcake? I don't think so.
Zweig ends his piece by giving the rationale behind the Treussard pyramid:
"Making the easiest decisions first means you minimize your future regret, because you can take plenty of simple actions between two layers of the pyramid. Thus, you will feel less need to grapple with the much more difficult- and potentially regrettable decisions."
Good advice, and let's hope any blog readers still in the markets are ready to take it.
And:
by Robert Reich | April 7, 2025 - 5:38am | permalink
— from Robert Reich's Substack
It’s hard to remember that only 10 weeks ago, the American economy was quite good, our foreign relations were on the whole positive, we were on the way to dealing with climate change with subsidies for wind and solar energy, and we still lived in a democracy.
Today, all that is disappearing. The economy is in acute danger, our relationships with traditional allies are collapsing, we’re subsidizing fossil fuel polluters, and we’re turning into a dictatorship.
This has happened in part because of Trump’s continuing creation of fake national emergencies.
He has declared foreign trade a national emergency and used the International Emergency Economic Powers Act of 1977 to raise tariffs to levels not seen since the disastrous Smoot-Hawley tariff of 1930.
And:
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