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Frozen in Fear? Why Doing Nothing Could Be Your Worst Financial Move
We’re living in a strange moment right now. The headlines are non-stop: the Fed might lower rates or maybe not. Tariffs are back in play. Talk of recession hangs in the air. And yet the stock market keeps running higher even when the fundamentals don’t make sense.
If you’re like many people I talk to, you feel stuck.
Do you stay in?
Do you get out?
Do you just keep doing what you’ve always done and hope it works out?
My guest on the podcast this week, David McWilliams, has a powerful message: freezing is not a strategy.
Why the Status Quo Is Dangerous
When interest rates dropped to zero, traditional valuation went out the window. Suddenly, companies that never made a dime were worth billions. That’s how we ended up with “unicorns” businesses valued in the billions that never should’ve existed in the first place.
Now, with rates higher, liquidity is drying up. David calls what’s coming a “mass extinction event” for many of those companies. And here’s the truth: if you’re still hanging on because everyone else is, you could be the last one holding the bag.
As David reminded us, “Nobody ever lost money by selling too early.”
The Fed, Politics, and Global Shifts
For decades, the Federal Reserve has been untouchable. Since Paul Volcker in the late ’70s, the Fed has been the one steady hand guiding the economy. But today, that independence is under political attack. And what happens if political pressure forces the Fed to make short-term moves that hurt long-term stability?
Meanwhile, the world isn’t standing still. Leaders like Modi, Putin, and Xi are openly aligning, representing nearly half the world’s population and a massive portion of global GDP. Money, as David says, is like a gypsy it moves around the world, always searching for a new home. If the dollar weakens, the game changes fast.
Don’t Let FOMO Drive Your Future
Right now, we’re in what I’d call a global FOMO market. Stocks run higher on bad news. Oracle jumps 40% when earnings fall. None of it makes sense and yet people keep piling in.
This is what Robert Kiyosaki calls “dumb money” when the masses jump in late because they’re afraid of missing out. That’s usually when the smart money is quietly exiting.
Cash Isn’t Laziness It’s a Strategy
If you’ve been conditioned to think “staying invested no matter what” is wisdom, it’s time to rethink that. Sometimes the best move you can make is to take chips off the table, hold cash, and wait.
Cash isn’t doing nothing. Cash is giving yourself flexibility, options, and control. It’s the dry powder that lets you move when opportunities appear.
Your Ripple Effect Still Matters
At Money Ripples, my mission isn’t just about helping you get rich. It’s about helping you become work-optional, with enough passive income that you choose how to live. And it’s about helping you create a ripple effect, blessing others because you’ve been financially blessed.
But you can’t create that ripple if fear has you frozen in place. You also can’t create it by blindly following the crowd.
Now is the time to think independently, protect your downside, and position yourself for the next wave of opportunities.
Want More from David McWilliams?
David’s new book, The History of Money, comes out in the U.S. this November, published by Henry Holt. It’s already won Financial Times Book of the Year and is a brilliant read. You can also follow him on X at @davidmcw and learn about his unique Kilkenomics Festival in Ireland—a one-of-a-kind mix of economics and stand-up comedy.
Final Thought
Your financial freedom won’t come from luck. It won’t come from hoping things “go back to normal.” It comes from informed action.
So ask yourself: Do you want to keep following the herd, or do you want to lead your own path to freedom?
Take action, create your ripple, and let’s build a future where you not fear decide your financial destiny.