Market turbulence refers to periods of heightened volatility, uncertainty, and rapid fluctuations in asset prices across financial markets. It is often triggered by macroeconomic shocks, geopolitical tensions, regulatory changes, or unexpected events such as natural disasters or pandemics. During such times, investor sentiment swings sharply, leading to increased risk premiums, wider bid-ask spreads, and unpredictable price movements.
In turbulent markets, liquidity can dry up, safe-haven assets like gold or the US dollar tend to strengthen, and speculative trading often spikes. While turbulence poses risks for short-term traders, it also presents opportunities for strategic investors who can navigate volatility with patience, discipline, and a clear risk management plan.
