Just when it looked like it was finally safe to go back into the stock market, the bears have come roaring back.
And once again, Wall Street is blaming the White House.
After falling 420 points on Thursday, the Dow Jones industrial average tumbled another 300 points early Friday morning, and is down more than 1,500 points in total since Tuesday afternoon. This week’s selling rekindled fears of the early February market plunge, which shaved more than 3,000 points off the Dow.
Brad McMillan, chief investment officer for Commonwealth Financial Network, says that the tariff issue is a real headwind that the markets can’t ignore.
David Kotok, chairman and chief investment officer for Cumberland Advisors, adds that it will take probably take time for the financial and political costs of protectionist policies to show up in the economy and the markets.
“What the markets will do now is difficult to determine,” he says. “What Trump will do is impossible to predict. But we do know from history that protectionism results in higher inflation and slower growth over time.”
Read the full article at http://time.com/money/