Writer’s Notice: We’re having a celeb visitor be part of us tomorrow within the Monument Merchants LIVE chatroom! “secure havens”
Jon Najarian, a former Chicago Bears linebacker turned skilled dealer, is becoming a member of us LIVE at 2 p.m. ET.
Jon is knowledgeable investor, cash supervisor, and media analyst who’s earned a fame within the business as an choices buying and selling knowledgeable.
Be part of him and Chris LIVE on Thursday at 2 p.m. ET.
Click on right here so as to add it to your calendar.
– Stephen Prior, Writer
$1.4 trillion in market worth worn out in a single session.
However that’s not the scary half.
The scary half is watching the U.S. greenback and Treasury markets get dumped proper alongside every part else when world tensions exploded over Greenland tariffs.
Yesterday jogged my memory that we’re residing via a basic shift in how the world views American property. And most traders don’t know what’s coming subsequent.
On January 17, President Trump introduced by way of Reality Social that imports from Denmark, Norway, Sweden, France, Germany, the U.Okay., the Netherlands, and Finland would face 10% tariffs beginning February 1. The tariff charge escalates to 25% on June 1, until the U.S. will get to buy Greenland.
European leaders referred to as it “new colonialism.” They held emergency summits. Army reinforcement have been despatched beneath Operation Arctic Endurance.
The NATO alliance is straining.
Markets predictably tanked.
- The Dow fell 870 factors (1.76%).
- The S&P dropped 143 factors (2.06%).
- The Nasdaq slid 561 factors (2.39%).
That was worst day for all three since October 2025.
Tech acquired crushed too… Nvidia down 4.5%, Apple down 2.8%, Broadcom down 5.5%.
Customary Market Tantrum? Incorrect.
Right here’s the issue…
Whereas the markets shook of their boots yesterday… the 10-year Treasury yield jumped to 4.30%, up greater than 6 foundation factors, whereas the 30-year spiked to 4.92%. The greenback index fell 0.76% to 98.64 – the most important each day drop in over a month.
Within the previous world, when world tensions spiked, cash fled to U.S. Treasurys and {dollars}. Flight to security.
Not anymore.
Yesterday, each acquired dumped alongside every part else.
We’ve misplaced our safe-haven standing.
Tariffs are ALWAYS paid by the receiver of the products, not the sender – these “tariff checks” politicians speak about are your personal cash being recycled again to you.
However the tariff particulars don’t matter. What issues is that when America creates world chaos, world cash not routinely flows into American property for cover.
Large Implications
Our nation is sort of a bank card junkie – $38.5 trillion in debt and climbing. We finance every part via borrowing, which works when the world desires to lend to us at affordable charges.
However $8.5 trillion of that debt is held by foreigners. Overseas holdings hit a document $9.36 trillion in November, led by Japan ($1.2 trillion), the U.Okay. ($807 billion), and China ($750 billion).
China’s Treasury holdings fell to the bottom degree since 2008. They’ve been quietly lowering their publicity to U.S. debt for years.
While you lose safe-haven standing, foreigners demand increased yields to compensate for elevated threat. They begin diversifying away out of your property totally.
Greater charges kill development shares.
Worse, if this turns into everlasting quite than momentary market stress, we’re taking a look at structurally increased borrowing prices and a weaker greenback in the long run.
The bond market will in the end dictate what the inventory market does. And proper now, the bond market is saying American property aren’t the automated secure alternative they was.
YOUR ACTION PLAN
Buyers who assume U.S. property will all the time be the worldwide secure haven throughout a disaster are making a harmful wager based mostly on outdated assumptions.
The world is watching how we deal with this Greenland state of affairs. If we maintain creating world instability whereas anticipating the world to maintain funding our debt at favorable charges, we would uncover how rapidly monetary dominance can shift.
Yesterday wasn’t only a market tantrum over tariff tweets. It was a preview of what occurs when America loses its monetary credibility.
The query is whether or not we’re witnessing the start of the top of the greenback’s particular standing in world finance.
That shift would change every part about how we make investments, how our economic system capabilities, and the way a lot our authorities can afford to borrow.
Hold watching Treasury yields and greenback power throughout future disaster moments. If this sample holds, we’re in for an funding atmosphere very totally different from something most Individuals have ever skilled.