I'm a CFP: Here's How To Invest When You Have Zero Confidence in the Economy
For many people, navigating today’s economy feels more like walking a tightrope than standing on steady ground. With prices rising and the labor market doing its best impression of the tortoise, not the hare, the prospect of investing can feel daunting.
But it is doable. Even when times are tough, certain principles of smart investing continue to hold true. To learn more about how to invest when your faith in the economy is more loosey-goosey than rock-solid, MoneyLion turned to Beth Stenz, CFP, a financial adviser at Edward Jones.
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1. Ignore the Headlines — Invest in a System, Not a Prediction
Stenz knows the headlines are scary. And she understands the urge to panic. But she urges investors to remember one key thing: When your confidence in the economy is low, you have to shift from reacting emotionally to following a logical process.
OK, maybe she wants you to remember two things.
“I remind clients that their personal financial plan is not the economy,” she said.
Your personal financial plan isn’t about predicting every market move or economic cycle. Instead, it’s focused on long-term goals like generating retirement income, building a tax strategy and maintaining cash flow — priorities that don’t change every time the market does.
That’s why your process should separate what is knowable — time in the market, diversification and normal downturns — from what isn’t knowable, such as short-term economic direction.
2. Core Investing Principles Don’t Change — Even When the Economy Does
Even if it feels like the broader economy is on a seesaw, market uncertainty doesn’t invalidate investing fundamentals.
“My firm was built on these principles more than 100 years ago, and they still hold true today, often just with fancier verbiage,” said Stenz. “To simplify: Buy quality. Diversify. Invest for the long term.”
Volatility isn’t the same as loss. Investors who sell in a panic during downturns can unintentionally damage their long-term results, which is why sticking to sound fundamentals matters even more when the economy feels unstable.
Another fundamental to follow? “Make sure you have an emergency fund to draw from in times when the market may be down so you are not negatively impacting your performance potential,” said Stenz.
3. The Best Portfolio Is the One You Won’t Panic-Abandon
Building a portfolio isn’t just about what looks good on paper. According to Stenz, it’s about creating something you can actually stick with — especially when fear creeps in.
“I start by recognizing that emotional safety doesn’t come from conservative portfolios — it comes from portfolios people can stick with,” she said. “That means truly understanding how a client experiences money, not just how they talk about risk on a questionnaire.”
Before she even talks to a client about investments, Stenz learns a few core things about them:
How they behaved during past market swings
Whether market losses feel like temporary setbacks or personal failures
Their money habits — whether they check balances frequently, avoid them altogether or react impulsively
How emotionally connected they are to the goal this money is meant to support
She does this inventory because context matters. Two clients with identical balance sheets may need very different strategies based on how they respond to uncertainty.
Asking these questions also helps investors better understand themselves — and avoid portfolios they’re likely to abandon at the worst possible time.
To help protect clients from emotional missteps, Stenz builds what she calls “guardrails,” which may include:
Segmenting money by time horizon so short-term needs are protected while long-term money stays invested for growth
Diversification that can help smooth volatility and reduce the temptation to panic-sell
Enough liquidity — including an emergency fund — to reduce anxiety and prevent emotional decisions
4. There’s No 'Safe' Asset — Only Portfolios That Make Sense for You
No matter how much they may want one, there’s no single asset class that can perfectly reassure nervous investors. Stenz warns against relying entirely on traditional assumptions.
“What feels safe has much more to do with alignment than allocation,” she said. “Traditionally, investors looked to bonds or balanced 60/40 portfolios for stability, but the post-COVID period was a reminder that assumptions don’t always hold.”
Instead of chasing perceived safety, confidence comes from clarity. Investors tend to feel better when they know why each part of their portfolio exists, how it’s expected to behave in different market environments, and how it supports their time horizon and cash flow needs.
“The goal isn’t to eliminate volatility," said Stenz. "It's to build a resilient portfolio that reflects both modern market realities and how the client truly experiences risk. That’s what allows nervous investors to stay invested without sacrificing long-term growth.”
5. Start With Liquidity, Then Layer Stability and Growth
When economic uncertainty rises, Stenz says balance begins with cash — specifically, an emergency fund that protects short-term needs.
Once you’ve got that in place, equities remain essential for growth and purchasing power. Bonds and other defensive assets can still play a role, but they should have clearly defined purposes rather than serving as emotional placeholders.
“Ultimately, the balance isn’t about reacting to fear," she said. "It’s about layering security: cash for today, stability for the intermediate term, and growth assets for the future. When those layers are clear, clients can feel uncertain about the market without being uncertain about their plan.”
The Bottom Line
When every economic headline has you breathing into a paper bag, you may feel like investing is too scary to attempt. By following time-tested principles, building a plan you can stick with and resisting the urge to react impulsively, you can continue investing — even when your confidence in the economy is low.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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