Robinhood CIO: Sit Tight After the Selloff — Why T‑Bills and Caution Matter

Stephanie Guild, chief investment officer at Robinhood, counsels a steady hand after the recent market selloff. Rather than chasing short‑term rebounds or making aggressive portfolio shifts, Guild recommends that many individual investors simply ‘sit tight’—preserving positions and avoiding reactionary moves that can lock in losses. The emphasis is on patience and measured judgement amid elevated volatility.

Guild points to short‑term Treasury bills and other high‑quality, liquid holdings as useful places to park cash for investors seeking safety while markets stabilize. T‑bills pay attractive yields relative to recent norms and offer capital preservation, making them an option for those who want modest returns without taking on additional equity risk.

At the same time, Guild urges investors to remain mindful of risks the market may be underestimating. She highlights the importance of monitoring interest‑rate expectations, corporate earnings trends and liquidity conditions that can change sentiment quickly. Rather than attempting to time a full market rebound, she suggests investors review asset allocation, trim concentrated positions if needed, and keep an emergency cash buffer.

For longer‑term goals, a disciplined approach—consistent contributions, periodic rebalancing and adherence to risk tolerance—remains the core advice. Short‑term volatility, while unnerving, often resolves over time; reacting to every headline can be costly. Guild’s guidance is pragmatic: use the current environment to reassess plans, consider high‑quality short‑term instruments for idle cash, and avoid emotional trading.

For active traders or those with a high risk tolerance, the selloff may present selective opportunities, but Guild warns these moves should be informed by research and a clear exit plan. Ultimately, her top line is calm and clarity: for many retail investors, the best action right now is restraint—hold steady, prioritize liquidity and keep an eye on the macro signals that could warrant future adjustments.