If your portfolio has taken a nosedive recently, you’re not alone. Some investors have taken to online platforms like Reddit to discuss their losses, with some citing as much as an 80% loss from their portfolio’s “top.” There’s a name behind the chaos, and it’s Kevin Warsh. When President Donald J. Trump nominated Warsh as the next Federal Reserve Chair, markets spiraled. This is because Warsh is known for his hawkish stance on monetary policy, and his appointment signaled a potential end to the “easy-money” era. Investors started dumping their assets in fear of tighter financial conditions. As a result, we’ve seen a global sell-off that wiped out trillions in market value, seemingly overnight.
So, what’s behind your portfolio’s nosedive? And what can you expect for the future? Here’s everything you need to know.
