Cabot Phillips

Anytime.

Anytime.

What are we looking at here? Yeah, most financial advisors will tell you not to look at your 401k too frequently. And that is especially sound advice this week. Since Monday morning, the Dow has fallen over 1,000 points, or over 2.5%. The S&P 500 has dropped about 2.7%, and the tech-heavy Nasdaq plunged by around 3%. The Nasdaq in particular had its worst day Monday since September of 2022.

What are we looking at here? Yeah, most financial advisors will tell you not to look at your 401k too frequently. And that is especially sound advice this week. Since Monday morning, the Dow has fallen over 1,000 points, or over 2.5%. The S&P 500 has dropped about 2.7%, and the tech-heavy Nasdaq plunged by around 3%. The Nasdaq in particular had its worst day Monday since September of 2022.

All right, so significant dips. The obvious question, what's causing this market turmoil? Well, it depends on who you ask. Many economists and lawmakers say the dip is a direct result of President Trump's tariffs, and in particular, the shifting nature of those policies. Markets hate uncertainty, and the on-again, off-again tariff threats do seem to have investors spooked.

All right, so significant dips. The obvious question, what's causing this market turmoil? Well, it depends on who you ask. Many economists and lawmakers say the dip is a direct result of President Trump's tariffs, and in particular, the shifting nature of those policies. Markets hate uncertainty, and the on-again, off-again tariff threats do seem to have investors spooked.

For more on that, I spoke with E.J. Antoni, an economist at the Heritage Foundation.

For more on that, I spoke with E.J. Antoni, an economist at the Heritage Foundation.

Others, however, say the market has been artificially propped up for years by excessive government spending and inflationary policies that have allowed the market to grow at a pace that was never aligned with economic reality. So now, as Trump is implementing federal spending cuts and vowing to cut the deficit and lower inflation, many investors are seemingly selling off.

Others, however, say the market has been artificially propped up for years by excessive government spending and inflationary policies that have allowed the market to grow at a pace that was never aligned with economic reality. So now, as Trump is implementing federal spending cuts and vowing to cut the deficit and lower inflation, many investors are seemingly selling off.

Here's Antoni to that point.

Here's Antoni to that point.

They argue that the unrest is temporary, but ultimately necessary in order to reorient America's standing in the global economy. Trump World has used the phrase detox to describe their trade policies, saying we've got to break our reliance on foreign manufacturing and force our allies and adversaries to implement more favorable trade policies.

They argue that the unrest is temporary, but ultimately necessary in order to reorient America's standing in the global economy. Trump World has used the phrase detox to describe their trade policies, saying we've got to break our reliance on foreign manufacturing and force our allies and adversaries to implement more favorable trade policies.

even if that does mean short-term economic disruptions. Here's Antoni with more on that so-called detox.

even if that does mean short-term economic disruptions. Here's Antoni with more on that so-called detox.

This week, the White House published a list of a dozen companies that announced plans to invest hundreds of billions of dollars in the U.S., creating hundreds of thousands of new jobs. They say that it's proof the president's strategy is working and that our economy will be better prepared for the future as we decrease our reliance on foreign business.

This week, the White House published a list of a dozen companies that announced plans to invest hundreds of billions of dollars in the U.S., creating hundreds of thousands of new jobs. They say that it's proof the president's strategy is working and that our economy will be better prepared for the future as we decrease our reliance on foreign business.

But in the meantime, markets have been on a bit of a roller coaster. The White House certainly hoping things settle down soon.

But in the meantime, markets have been on a bit of a roller coaster. The White House certainly hoping things settle down soon.