Markets had one of their worst days in decades on Monday, with the opening being so bad that it immediately triggered a suspension in trading on the New York Stock Exchange, known as a Market-Wide Circuit Breaker. This circuit breaker is tripped when the S&P 500 index drops by 7% in one day.
When the closing bell rang, the Dow Jones Industrial averaged had suffered its second worst trading day of the last 25 years, with the -7.8% drop on the day only bested by the -7.9% day at the height of financial crisis on October 15, 2008.
Even with that carnage, oil had an even worse Monday – crashing by a whopping 34%. That’s the largest drop since the 1991 war with Iraq started.
This enormous drop in oil price is the result of a spat between Saudi Arabia and Russia that started last Friday. It’s a new upset that is adding even more uncertainty into an already jittery market.
But the real repercussions here at home go far beyond just the promise of lower prices at the gas station.
Those repercussions will be much more sinister.
There’s one sector in particular you need to avoid and even short or buy puts on – and it’s NOT in the energy complex…