#MarketTurbulence refers to times when financial markets experience significant volatility—sharp ups and downs in prices, heightened uncertainty, and fluctuations in trading volume. It's often triggered by macroeconomic shifts, geopolitical events, corporate surprises, or sudden changes in investor sentiment
Rapid price swings and large trading volumes.
Increased investor anxiety and emotional reactions.
Events like a Minsky moment, where prolonged stability leads to overleveraging, often ending in a sharp crash.
Flash crashes, which are sudden, deep drops in prices followed by a quick rebound—often tied to high-frequency trading and liquidity withdrawal.
Several factors contribute to market turbulence:
Economic shifts like interest rate changes, inflation spikes, or GDP surprises.
Geopolitical events such as trade disputes, wars, or pandemics increasing uncertainty.
Policy shocks, for instance, tariff announcements or changes in central bank stance.
Investor psychology, including fear-driven “flight to quality”—where investors move from riskier assets to safer ones like government bonds.
Financial contagion, where turmoil spreads across markets or economies