Margin Call: Markets Down Another 4% Early Monday Morning

Investors were hoping for good news over the weekend... and instead they received the message “Hang Tough” from President Trump.

While the administration said 50 countries approached them for negotiation, the White House was predicting a rocky road ahead. Any war has unintended consequences... a trade war is no exception.

Already down 10% from its high, the futures indicated another 4% decline to start the week. China set the tone with a 34% tariff on all United States imports, with Canada, Mexico, and the European Union indicating similar action.

The concern by economists is not just the direct impact on global trade, but consumer sentiment that was already shaky. The economy may be impacted in the short term by consumer sentiment, and then the actual tariff impact will follow.

Hedge Funds and other investment strategists may be forced to sell equities to meet margin calls.

With cryptocurrencies falling this weekend, cash is the preferred place right now for many investors.

Clearly, this is President Trump's biggest bet and will define his second term.