Here are the key reasons behind a bearish trend:
1. Negative Economic News
Poor GDP growth
High unemployment rates
Decrease in consumer spending or industrial production
2. Rising Interest Rates
Central banks like the Fed increase interest rates, making borrowing expensive
Investors move money to safer assets like bonds
3. High Inflation
Reduces consumer purchasing power
Leads to higher input costs for companies, shrinking profits
4. Political or Geopolitical Instability
War, political unrest, or instability in major economies
Traders fear uncertainty and sell off assets
5. Pessimistic Market Sentiment
If investors expect future downturns, they sell
Biggest one is Donald Trump's actions
