Merry Christmas. It’s probably too strong to call it a crash, but it is certainly a fender bender.
The Dow Jones Industrial Average traded sharply lower Monday after U.S. Treasury Secretary Steven Mnuchin shocked investors worldwide over the weekend by tweeting that he had spoken to the CEOs of the six largest U.S. banks to ensure they were liquid.
The Dow was down 1.6 percent to midway through an abbreviated trading session ahead of the Christmas holiday. The losses added to last week’s crushing performance, the index’s worst week in 10 years — since the 2008 financial crisis. The tech-heavy NASDAQ was also getting crushed, trading 3.8 percent lower.
It crossed into bear territory last week for the first time since the 2008 recession, which means it is down more than 20 percent from its record high on Aug. 29.
Everyone will circulate their own perception of causes. In my opinion… we are in the midst of a general global downturn where America’s economy is fighting an uphill climb. Meanwhile, the tariffs and Fed machinations are like loose gravel under America’s feet.