Are You Afraid of a Crash? Investors Ask Natalie Pace.

Are You Afraid of a Crash? Investors Ask Natalie Pace.
 
Dear Natalie,
With all the headlines about inflation, government debt, and global conflict, I’m terrified the economy is going to crash. I want to pull all my money out of the market and put it somewhere safe. What should I do?
— Scared of a Crash (for Years Now)
 

Dear Cautious,
It feels like every time we open the news, there’s another reason to worry. From $40 trillion in U.S. government debt ($119 trillion in total U.S. debt and loans) to rising oil prices and global conflicts, it’s completely natural to want to hide all of our cash under the mattress.
 
If you’re aware that the Dow Jones Industrial Average has dropped 4,000 points over the last two months, -7.0%, then you might feel compelled to contact your financial team immediately to move you to safety.
 
But I’m going to share a truth that surprises many of my coaching clients: Right now, a real financial risk is actually sitting on the "safe" side of your portfolio.
 
Debt is Much Higher Than You Think
While most of us hear about the $40 trillion in government debt, are you aware that there is actually $119 trillion in total U.S. debt and loans, including bank, corporate, state, municipal, and consumer debt (source: the Federal Reserve Bank of St. Louis)? The ballooning debt and deficits have global U.S. Treasury purchasers demanding a higher interest rate. Yields on the 10-year Treasury have jumped from 4.2% at the start of the year to 5.3% currently (as of 9.29.2026).

Earning more on our cash is good news. However, for anyone who purchased a long-term bond or Treasury at the lower interest rate, the value of their asset has dropped markedly. When yields jump, bond values plummet.
 
The Hidden Danger of Paper Losses
When people get nervous, they flock to conservative fixed-income assets like long-term bonds. But "conservative" doesn’t mean risk-free. Most traditional conservative portfolios have way too much exposure to credit, duration, and interest rate risk. That’s easy to do in today’s world when half of U.S. corporate debt is at the lowest rung of investment grade.
 
I discussed this at length in many recent blogs, which I’m listing at the end of this blog. I strongly encourage you to check them out.
 
If you are holding T-Bills or bonds that you purchased before 2026, you could be experiencing heavy "paper losses." In 2022, long-term government bonds were some of the worst losers, at -26% losses compared to the -19.44% decline in the S&P 500 – further illustrating my point that conservative plans are not safe.
If the projected interest rate hikes come to fruition – the CME Group is forecasting one hike in the next 6 months, and potentially 2 or 3 within the year – those paper losses will get worse. Remember: the safe side of your portfolio is not supposed to lose money. If it is, it’s not fulfilling its role.

Spotting the Tricky Incentives
The good news? Some long-term bonds, albeit a minority, that were major losers just a few months ago have recovered enough for investors to break even. This could be the perfect window to de-risk.
 
The bad news? Navigating this is tricky. Even if you have a conservative risk tolerance, some managed financial plans can include hidden incentives for advisors to push you into riskier assets. Some fiduciary wealth managers work at brokerages that are part of a conglomerate that includes an investment bank. Through my unbiased second-opinion analysis, I’ve seen quite risky, long-term, low credit quality, and private credit products in plans that were crafted for conservative investors who wanted income without loss of principal.
 
You can earn a fantastic income—currently about 5%—without credit or duration paper losses. You just need to know how to structure your fixed income to protect yourself from upcoming rate changes, unprecedented levels of debt, and duration risk – something I teach at the Financial Freedom Retreat and the Bonds and Fixed Income Without Paper Losses masterclass.
 
We’re proud to report that our strategy has our students earning that market yield without the paper losses. (When interest rates were at zero starting in 2009, offering no return for the risk, we encouraged people to consider purchasing a second home. Real estate has more than doubled since then.)
 
Do You Have Too Much at Risk in Equities?
It is important to know that you have an age-appropriate, properly diversified, and protected wealth plan in place. If you are overconcentrated in equities, that is a danger and a risk.
It is important to be the boss of your money and know exactly what you own and why. Don’t just rely on what you’re being told. A CEO would want to see the paperwork and grade the performance of her CFO with data, not blind faith.
 
I’m not saying that since bonds are risky, you should stick to stocks. If we build upon our wealth foundation and keep our principal intact, then we can have an age-appropriate amount at risk, so that we can potentially earn the 10% annualized gains that stocks have seen over the past decade (and even 30 years).

We show you what an age-appropriate plan looks like in our Financial Freedom Retreat and in our free web apps. I also offer an unbiased second opinion in my private coaching practice.
 
The stock side is there for performance, while the bonds are there to preserve principal and earn income.
 
🚀 Take the Next Step to Protect Your Wealth
Don't let your wealth plan languish or lose with a strategy that isn't right for your age or is more problematic than you’re being advised. If you have a conservative risk tolerance, again, you might be sold some of the riskiest assets, which could cause an immediate, potentially permanent, loss in the principal value of your portfolio.
 
Join me for my upcoming Online Financial Freedom Retreat and our exclusive masterclass: Bonds & Fixed Income Without Paper Losses. Learning and implementing the life math that we all should’ve received in high school will enable you to set up a wealth plan that is age-appropriate, truly protected, diversified, and outperforming. (Some of our suggested hot slices, including silver, Peru, and clean energy, were the superstars of 2025.)
 
 
Our easy-as-a-pie-chart system adds both performance and protection to your plan. Better yet, it’s less time and less money. Once you set up your financial house right, all you need to do is spring clean once or twice a year.
 
👉 [Register for the Financial Freedom Retreat & Masterclass Here]
 
P.S. Are you or a loved one dealing with a different kind of financial squeeze? We are currently facing a massive crisis with recent college graduates—about 42% are underemployed, stuck in the gig economy, or working blue-collar jobs that don't pay enough to cover their mounting student loans. If someone you care about is struggling to find their footing, please share my recent deep-dive article, "The Gig Worker’s Guide to Financial Freedom." It might be the exact lifeline they need right now!

Other Blogs of Interest
Are Your Bonds Truly Safe?
The Bond Bailout Backfired.
The Higher the Dividend, the Higher the Risk.
Why I Prefer Select Corporate Bonds to Treasuries.


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Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Peru has been on fire. Clean energy scored 44%... Cybersecurity is up 31% year to date (as of 9.5.2026). 
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Why not treat yourself to the gift of financial freedom and a green wealth plan?
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Register now to join us at our online Financial Freedom Retreat Oct. 10-12 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register with friends and family to receive the best price. (Ask for access to a recording of our Wealth Secrets of the 1% or our Real Estate masterclass as our gift to you.) Email [email protected] to learn more and register now.

If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 4-11, 2027. (With just three rooms still available, this exclusive, private, bucket-list is almost sold out!) Call 310-430-2397 or email [email protected] to learn more. The 2025 Restormel Retreat was a magical and royal experience. Click to learn more. 

Request testimonials at [email protected]. You can also view some on the flyer page of the retreat. 

Learn how to:

* Invest in hot industries, such as Nvidia, artificial intelligence, and chips,
* Save thousands annually with smarter big-ticket choices
* Hedge against a weaker dollar,
* Invest and compound your gains,
* Green your retirement plan,
* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

Yes, it's a complete money makeover. 
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Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. ​

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM
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"Many people, including educated men and women, often get into trouble when they 
neglect to follow simple and fundamental rules of the type provided [by Natalie]. 
This is why I recommend them with enthusiasm." 
Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital

"College students need this information before they get their first credit card. Young adults need it before they buy their first home. Empty nesters can use the information to downsize to a sustainable lifestyle, before they get into trouble." 
Joe Moglia, former Chairman & CEO, TD AMERITRADE

Email [email protected] for pricing, additional information and to register. Register with friends and family to receive the best price.

Email [email protected] for pricing, additional information and to register. This is a canon event!

Join us for our Restormel Royal Immersive Adventure Retreat. Spring Equinox 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now to receive two 12-month all-access passes to our online training and four private, prosperity coaching sessions. There are only 3 rooms available. Considering the perks, you're receiving a 65% discount to learn the life math that we all should have received in high school, and the room is free! Email [email protected] to learn more. Yes, it's a great idea to register and start transforming our lives now with the online ABCs of money courses.

Natalie Wynne Pace is an advocate for sustainability & financial literacy. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of The ABCs of Money for College are the most recent releases of these books. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​​

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Check out Natalie Pace's Substack podcast and watch videoconferences and webinars on Youtube.

Other Blogs of Interest
Should You Pay for a Roth Conversion? 
The Gig Worker's Guide to Financial Freedom. 
Are Your Bonds Truly Safe?
Should ChatGPT Be Your Financial Planner?
2026 Investment of the Year. Who Will Win the Trillion-Dollar Sky?
Don't Dream It. Be It. From Quiet Quitting to Living on Fire. 
What Federal Reserve Board Chairman Kevin Warsh Didn't Say in Jackson Hole.
Investing in Canada, China, Europe vs. Peru, Australia and Indonesia.
$40 Trillion Debt. Bond Bailout Backfires.
High Performance by Design.
Are Your Air Miles Safe? Lessons from the Spirit Airlines Bankruptcy.
The Superstars of 2026. A Mid-Year Update. What Happened to AI & The Magnificent 7?
Plastic Free July. The Recycling Lie. 
The Higher the Dividend, the Higher the Risk.
Wall Street has a Serious Gambling Problem. Margin Trading Hits an All-Time High.
Warren Buffett Investing Tips and that Deepfake Video.
The SpaceX IPO. Are You Buying High?
Capture Gains at an All-Time High. Rebalance.
Why I Prefer Select Corporate Bonds to Treasuries. 
Should You Just Own an S&P 500 Fund? 
Hot Countries.
Oil Prices Soar. Stocks Sink. 
15 Rules of the Rich.
The Venus Fly Trap of High-Yield and Private Credit Funds. 
AI Says There is a 70% Chance of a Correction in 2026. Learn why.
Investors Sell Magnificent 7 for Chevron and Caterpillar. (Is this a good idea?)
6 Rules to Earn Tens of Thousands with Low Risk. 
2026 Investor IQ Test.
Answers to the 2026 Investor IQ Test.
Finding Harmony: A King's Vision. Half a Century of Sustainability Leadership.
Why are Mortgage Rates so High?
Is an EV Winter Coming?
Copper and Peru are Hot, Hot, Hot.
2026 Rebalancing IQ Test.
Answers to the 2026 Rebalancing IQ Test. 
A+ 2025 Performance Report Card with Bragging Rights. 
Are We Headed for Another Crypto Winter?
Save Thousands Annually on Health Insurance and Medical Care. 
2026 Bonds and Fixed Income Without Paper Losses Strategy.
Magnificent 7 Update. On Fire. Expensive. 
Stablecoins. Should You Invest? 
Clean Energy. Solar Generation is On Fire. 
Are You Paying Thousands to Lose Money?
Wealth Hacks: Are You Getting Killed in Capital Gains Taxes? 
Our Super Performing Hots and Value Replacements.
Is Your Income Strategy Losing Money?
Get Safe & Hot in 1 Easy Plan. 
Home Prices Soften. Is Your City Next?
Tesla Vision vs. Waymo LiDAR and Air Taxis. Are Any of Them Safe?
Archer Aviation is Chosen to be the Exclusive Air Taxi Service for the 2028 L.A. Olympics. Company of the Year?
Utilities: In the Eye of the Natural Disaster Storms. 
Aging Mom Doesn't Want to Discuss Dilapidated House. Investors Ask Natalie.
Tesla, Tariffs, Chinese Competition and Price Wars.  
Health Savings Accounts. Save Thousands. Get a Tax Credit. Provide for Tomorrow's Healthcare Needs.
Restormel Manor House 2025. A Truly Royal and Magical Adventure. 
9 Ways to Cut Your Tax Bill in Half and Save Thousands Annually.
10 Rules of Successful Investing. 
Indonesia: Rich in Nickel with Ambitions of Becoming an EV Battery Hub.
RoboTaxis. AI. The Magnificent 7. 
Canadian, Australian and U.S. Banks. Are Any of Them Safe?
Ireland. Rich in Technology, Biotechnology and Agribusiness. 
9 Money Secrets of the Ultra Wealthy.
Housing & Budgeting Solutions.
Fast Fashion. Fossil Fuels. Plastic Clothing. Atacama Desert Waste Dumps. 
Fintechs and Brokerages that Fail are Not FDIC-Insured.
Housing. Unaffordable. What Works? Case studies and creative solutions. 
The Underperforming DJIA, Full of Fossil Fuels and Forever Chemicals.
13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough.
11-Point Green Checklist for Schools.
10 Wealth Secrets of Billionaires and Royals.
Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments.
BRICS Currency. Will the Dollar Become Extinct?
Is Your FDIC-Insured Cash Really Safe? 
Money Market Funds, FDIC, SIPC: Are Any of Them Safe? 


Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly-traded companies, funds or projects mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, patience and diversified strategy.  
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Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.