Part 4/8:
Davis pointed out that the recent market drop was primarily due to the announcement of a 10% tariff, which was more extensive than originally anticipated. While some level of tariffs was expected, the scale caught the market off guard, prompting the sharp decline. Vanguard forecasts a period of mixed outcomes and high volatility as these tariffs get renegotiated. Certain sectors may face higher prices, while others may experience lower prices due to decreased demand. The uncertainty surrounding the duration of tariff negotiations contributes to enduring market volatility.