The Black Monday Breakdown: This Week's Market Forecast

This Week's Earnings Calendar

Markets just wrapped up one of the toughest two-day stretches in recent memory, with a drop of over 10 percent. On Wednesday at 4 PM, President Trump announced a sweeping plan to impose "reciprocal" tariffs on every country around the globe.

Initially, investors responded with cautious optimism. A report from the Wall Street Journal suggested the tariffs would be limited to just 10 percent. That changed quickly. Trump presented a chart showing actual rates, and while 10 percent was the floor, many countries faced far steeper penalties, China was hit the hardest with a combined rate of 54 percent.

Markets began to slip after hours. By Thursday, the selloff accelerated. Major indexes each lost more than 4 percent, and yet some investors began calling it a buying opportunity. With the market already down over 10 percent year to date, it seemed like a fair bet.

But Friday morning brought a fresh headline: China would strike back with its own tariffs on US goods, totaling 34 percent. Markets opened lower and closed with a nearly 6 percent loss, another blow to an already volatile week.

Over the weekend, I poured through research, commentary, and analysis. One theme kept popping up: "Black Monday." That phrase brings back memories of 1987, and the fear that we might see a repeat began to spread among investors and analysts.

Global markets followed the same path. Asian exchanges opened sharply lower. Japan fell 6 percent out of the gate, and China dropped 9 percent. As I write this on Sunday evening, US futures are down more than 3 percent and have not seen a single moment of green.

Corrections like this are never easy, but they are normal. Long term investors should see times like these as moments to reassess, reframe, and possibly reenter. To borrow from The Art of War, "In the midst of chaos, there is also opportunity."

This will pass. It always does.

Keep your head up. Stay focused on the long term. And remember, investing rewards patience.

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