This past week was one for the history books. The Nasdaq dropped 10% in just five days, putting it 22% below its February peak. Technically, the Nasdaq is in a bear market.
The S&P 500 lost 9% for the week and is now down 17% from its high.
Many blame the new administration’s tariff plans. As an International Economist, I cannot see logic in these tariffs—unless there’s a hidden plan I don’t understand.
The market has shed several trillions in value, while the tariff revenue is estimated below $1 trillion. That’s not exactly a winning trade for the U.S. economy so far.
Why the Drop?
It’s not a credit or liquidity crisis. Money supply is still improving in the U.S. and other major economies.
It’s more of a “growth fear”: tariffs could slow global trade and potentially spark a recession in the coming months. Oil prices have plunged under $70, and 10-year …
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