WASHINGTON—During a visit with President Donald Trump at the White House, El Salvador’s president Nayib Bukele claimed Monday that he “lacks the humanity” to return wrongly deported legal U.S. resident Kilmar Abrego Garcia back to America. “How can I return an innocent man to the United States when I don’t have the ability to feel empathy or compassion?” said Bukele, explaining that he’s consulted with his top advisors about the 29-year-old Maryland father being held in a Salvadoran prison, but none of them could find it in their hearts to care at all about the man’s situation. “Do you hear how ridiculous it sounds to expect that I could see myself reflected in another human being’s experience? Even if I wanted to, there’s no way I could acknowledge the plight of someone who is suffering because I am completely numb to the pain of others. My hands are tied because I’m totally dead inside.” At press time, President Trump had publicly thanked Bukele for his use of cruelty to project a facade of strength.

First, Do No Harm
First, what not to do: Dramatic market losses can spark real emotions (anxiety, powerlessness), and it can be tempting to take dramatic portfolio measures in response. With cash yields decent relative to recent history, the stability of money market funds or CDs might look like a tempting and reasonably profitable way to escape the cacophony of the market. You do need some liquid reserves in your portfolio (more on this in a minute), but resist the urge to shift out of stocks entirely. Such a move could buy you some short-term relief, but it will soon be replaced by another nagging worry: Is it time to get back in?

Moreover, retreating to cash only protects you from one risk—further equity losses—but it doesn’t safeguard you against other key trouble spots—specifically, inflation risk or the chance that you’ll outlive your money because your portfolio didn’t grow as much as it needed to. A better plan is to maintain a stock/bond mix that makes sense relative to your goals, life stage, and proximity to needing your money, then rebalance back to your targets periodically. A balanced asset allocation will make sense for most people approaching or in retirement, whereas a more equity-heavy mix will suit investors under 50.