Vanguard Total Stock Market Index (VTI) Spiraling Again Today

With sky-high tariff fears, inflationary threats, and growing concerns about a recession, markets are plummeting to lows not seen since late 2023.

Look at the Vanguard Total Stock Market ETF (NYSEARCA:VTI), for example.

Key Points About This Article 

• Unfortunately, the Vanguard Total Stock Market ETF could pull back even more, with fears of higher tariffs against China.
• Bill Ackman is warning that Trump tariffs, expected to go into effect this Wednesday, are equivalent to “economic nuclear war.”
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Since its February peak, the ETF has now pulled back from about $302 to a low of $236.42. And unfortunately, it could get even worse, with fears of higher tariffs against China. In fact, President Trump just threatened Beijing with 50% tariffs if they don’t lift their retaliatory duties on U.S. exports by Tuesday. All of which could do further damage to the overall market.

Billionaire Bill Ackman Warns of Economic Nuclear Winter

Bill Ackman is warning that Trump tariffs, expected to go into effect this Wednesday, are equivalent to “economic nuclear war.”

In fact, according to Ackman’s comment on X:

“The president has an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country. If, on the other hand, on April 9th, we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocketbooks, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate.”

JPMorgan Raised the Odds of Global Recession to 60%

With the trade war, JPMorgan says the odds of a global recession are now up to 60% from 40%, pre-tariffs. “Disruptive U.S. policies have been recognized as the biggest risk to the global outlook all year,” the brokerage said, as noted by Reuters, adding that the country’s trade policy has turned less business-friendly than anticipated. “The effect … is likely to be magnified through (tariff) retaliation, a slide in U.S. business sentiment and supply-chain disruptions.”

Even Goldman Sachs now says there’s a 45% chance, a raise from its initial forecast of 35%.

Unfortunately, until other countries and continents are ready to negotiate, markets and market-tracking equities like the Vanguard Total Stock Market ETF are likely to pull back even more aggressively.