Roughly a year ago, I wrote an Op-Ed which described what I thought could be the 'Black Swan' for the Trump administration: protectionism.

At that time the lawmakers were struggling with the idea of a border adjusted tax which is a tariff. My conclusion was simple—protectionism is a prosperity killer which must be avoided. But here we sit, watching the global markets in turmoil as the Trump trade unravels. The tariff tantrum has led to tariff terror. Retaliation can be severe and in the case of the Chinese, financially painful.

Aside from the obvious loss of revenue from trade, one of the biggest reasons to be worried is the growing power of the Sovereign Wealth Funds. According to SWFI, who track Sovereign Wealth Funds, of the top ten SVF's, four are Chinese with assets totaling over $2 trillion: China Investment Corp $900 billion, HK Monetary Authority $450 billion, SAFE Investment Co. $440 billion, and National Social Security $300 billion.

With over a reported 40 percent of assets invested in the US, it wouldn't take much for these funds to make an impact on our markets. In fact, a simple rebalancing of these massive funds would leave a huge footprint on the markets and would be much like turning an aircraft carrier around in a tiny bay, it leaves a huge wake! Never in the history of the world have we witnessed a trade war in the age of Sovereign Wealth Funds.

It isn't all bad news. With the selloff comes the opportunity to buy stocks at great valuations. The price to earnings ratio for the S&P 500 is now 16.5 for forward earnings, much better than the 18 P/E we saw earlier in the February. This is the dip we have all been waiting to use to our advantage. The only question is, how deep will the selloff be?