It looks bleak in the short-term for the stock market bulls, judging by several measures.
With Trump's tough stance on tariffs triggering a quick response from China, the Dow Jones Industrial Average is now a stone's throw away from its Feb. 8 lows. About $1.5 billion has flowed into gold over the last week, according to Bank of America Merrill Lynch. Meanwhile, there has been $19.9 billion in equity redemptions following a record inflow last week.
Talk about investors having a quick change of heart. The investment bank continues to forecast a $6 trillion market correction, something TheStreet wrote about earlier this month.
As no surprise with talk of trade wars dominating Wall Street trading floors, it's the large-cap multinational stocks that have been whacked the most. Shares of General Mills (GIS - Get Report) , Procter & Gamble (PG - Get Report) , Kimberly-Clark (KMB - Get Report) , General Electric (GE - Get Report) and Harley-Davidson (HOG - Get Report) all plumbed fresh 52-week lows on Thursday.
For investors to get comfortable with the bottom possibly being priced into the market, it's the aforementioned large-cap global names that will need to stabilize and churn higher. Until they do, as they say on financial TV: "it will be a risk off environment for investors."
What One Billionaire Investor Suggests Doing Right Now
Billionaire Ken Fisher of Fisher Investments tells TheStreet the return of market volatility isn't a life-ending event. In fact, it should be embraced by investors looking to get into the market for the longer term.
Says Fisher, "This process is good, you should look past the short-term because short-term traders get whacked -- you should look toward the longer-term."
Watch more below.