#MarketTurbulence What Causes Market Turbulence?

• Economic Shocks: Unexpected events such as spikes in inflation, changes in interest rates, or geopolitical tensions.

• Changes in Consumer Behavior: Rapid shifts in customer preferences or demand patterns can disrupt industries.

• Technological Disruption: Innovations that overturn traditional business models, such as AI or blockchain.

• Globalization: Increased competition and the complexity of the supply chain can amplify volatility.

• Leverage and Margin Calls: As seen in August 2024, unwinding leveraged positions in equity and currency markets can trigger sharp sell-offs.