#MarketTurbulence Market turbulence works a bit like sudden bad weather in the financial world — unpredictable, fast-changing, and sometimes dangerous if you’re not prepared.

Here’s how it happens and plays out:

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1. What It Is

Market turbulence refers to periods of high volatility — when asset prices swing up and down more than usual, often without a clear, steady trend.

Can be short-term (minutes, hours, days) or longer (weeks, months).

Measured by tools like the VIX Index (the "fear gauge") in stock markets or volatility indicators in crypto.

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2. What Triggers It

Several forces can create turbulence, including:

Economic shocks — unexpected inflation data, interest rate changes, GDP drops.

Political/geopolitical events — wars, sanctions, elections.

Market psychology — sudden panic selling or FOMO buying.

Liquidity changes — big players moving large sums in or out of the market.

Black swan events — rare, unpredictable disruptions (pandemics, major bankruptcies)