May 26, 2026
When markets get scary, the instinct to protect yourself by selling can feel like a smart move. However, it isn’t, and Suze Orman wants to make sure you know that.
Global oil prices have been on a volatile ride since the U.S.–Iran conflict began on February 28. West Texas Intermediate (WTI) crude oil prices surged more than 50% since the start of hostilities, sending shockwaves through financial markets worldwide — including in Canada, where energy stocks make up a significant portion of the S&P/TSX Composite Index.
Advertisement
Following the announcement of a two-week ceasefire on April 8, global oil prices briefly dipped below US$100 (C$139) a barrel before rising above that benchmark again days later, when negotiations between Iran and the U.S. broke down.
As of May 25, The Wall Street Journal reported that “The prospect of a possible peace deal with Iran sent oil prices falling and stock gauges around the world climbing Monday. The most actively-traded Brent crude oil futures slid roughly 5% to about $95 a barrel, the lowest since mid-April. That helped pull European bond yields lower as inflation worries cooled.”
This was also felt in Canada, where, according to Yahoo, the nation’s “main stock index was up more than 300 points while the price of oil fell in late-morning trading on hopes that U.S. and Iran could be nearing a deal to end their war and reopen the Strait of Hormuz.”
But the volatility hasn’t let up — and for investors, the temptation to cut losses has rarely been stronger.
That’s where Orman steps in.
‘I’ve learned that lesson the hard way’
In a conversation with markets expert Keith Fitz-Gerald on her YouTube channel, Orman made a direct appeal to investors feeling panicked: stay the course.
“Everybody who thinks they’re being smart by stepping out right now is going to get left behind,” Fitz-Gerald told Orman. “I’ve learned that lesson the hard way. I thought I was being smart, I bailed out, I made mistakes, I lost money.”
Advertisement
To illustrate why this moment is not the time to sell, Fitz-Gerald reached back two decades.
“In the early 2000s, Amazon lost 97% of its value,” he said. “That’s incomprehensible to people today, they simply forget their history. We’re going to get through this.”
Orman agreed: investors who hold through turbulent periods are the ones who benefit from the eventual rebound. Selling at the bottom — or near it — locks in losses and leaves you on the sideline when prices recover.
Tired of high commissions eating your returns? Compare Canada’s top discount brokerages and switch to a $0-commission platform today.
Must Read
- Warren Buffett used these 4 solid, repeatable money rules to turn $9,800 into a $150B fortune. Here’s how to apply them to your own life
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more, and build wealth — here’s how it works
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Stay the course during turbulent times
The concern isn’t only oil. JPMorgan Chase’s CEO Jamie Dimon recently warned that a 2026 recession could be looming, citing both the conflict in the Middle East and the rapid rise of artificial intelligence as potential economic disruptors.
In his 2026 annual letter to shareholders, Dimon wrote that the economy faces “the potential for significant ongoing oil and commodity price shocks, along with the reshaping of global supply chains, which may lead to stickier inflation and ultimately higher interest rates than markets currently expect.”
For Canadian investors, those words carry significant weight. Canada is one of the world’s top oil producers, and commodity price swings ripple through the economy — affecting everything from the loonie to the TSX. When global markets panic, Canadian markets tend to follow.
Advertisement
But as Orman and Fitz-Gerald point out, panic is rarely a profitable investment strategy.
Historically, recessions — even severe ones — are temporary. The Bank of Canada notes that Canada has experienced several recessionary periods since the Second World War, with most lasting between two to five quarters. The 2008–09 financial crisis, one of the deepest in modern history, saw the Canadian economy recover within roughly 12 months of its trough.
The same principle applies to market performance. When the COVID-19 pandemic hit in March 2020, the S&P/TSX Composite Index fell sharply — losing more than 37% from its February peak to its March low. Yet by the end of 2020, the TSX had largely recovered those losses, and by mid-2021 it had surged to record highs.
“Investors who sell after the market has dropped substantially usually are setting themselves up to miss the future rally in asset prices,” the National Bank of Canada writes.
The takeaway is the same whether you’re watching the TSX or the S&P 500: Staying invested through turbulence has — historically — been the better path.
What Canadians can do right now
If you’re feeling uneasy about your portfolio, that’s understandable. But before making any moves, consider these steps:
Advertisement
Review your asset allocation, not your returns. Volatile markets have a way of revealing whether your portfolio is actually built for your risk tolerance. If watching the TSX drop keeps you up at night, it may be time to revisit how your investments are structured — not sell everything, but reassess the mix.
Think twice before selling inside your RRSP or TFSA. Your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) are designed for long-term growth. Selling investments inside these accounts during a downturn doesn’t trigger capital gains tax — but it does lock in your losses. Re-contributing to a TFSA after a withdrawal only restores room on January 1 of the following year, meaning you may miss the recovery window.
Consider a TFSA for new contributions during downturns. If you have available TFSA contribution room, a market dip can actually be an opportunity to buy quality investments at lower prices — and have any future gains grow completely tax-free.
Avoid making emotional decisions with your RRSP. RRSP withdrawals are treated as taxable income in the year they’re taken. Withdrawing during a panic not only locks in losses, it could push you into a higher tax bracket.
Check in with a financial adviser — not social media. It’s tempting to follow what others are doing during a market downturn. A licensed financial adviser can help you stress-test your plan and make sure your strategy still makes sense for your goals, timeline and risk tolerance.
- With files from Melanie Huddart
You May Also Like
- Focus on these 3 ‘magic numbers’ to become a millionaire — and only on these numbers. How do you stack up?
- Here are the 3 essential moves to make once you’ve saved $50,000
- Suze Orman recommends these 6 simple ways to avoid the stress of living paycheque to paycheque
- Your daily coffee habit isn't the problem. Prioritize these 4 critical investments instead and watch your net worth skyrocket
Em Norton is a Content Specialist at moneywise.com. They have been with the company since 2022. Em has been writing and editing professionally since 2019 and has previously been published by IN Magazine, Xtra Magazine, Money Under 30, Money After Graduation, Our Canada and more.
