#MarketTurbulence

Market Turbulence is a state of instability and severe disruption that financial markets experience, leading to rapid and unpredictable changes in the prices of various assets, including stocks, bonds, and currencies.

This state causes investors to feel anxious and unstable, driving them to make quick decisions to sell assets en masse to avoid potential losses, which in turn increases the severity of the turbulence.

Among the prominent causes of market turbulence are major economic crises, economic recessions, or global financial crises. Geopolitical events also play an important role; wars or political tensions between countries can negatively affect investor confidence and lead to market disruptions.

The monetary policies of central banks, such as raising or lowering interest rates, can be a cause of turbulence. Raising interest rates is usually aimed at curbing inflation, but it can lead to a slowdown in economic growth, negatively impacting stock markets.

Rapid technological developments and shifts in consumer behavior can also cause turbulence in certain sectors; for example, digital technology has significantly impacted sectors such as media and traditional retail.

To deal with market turbulence, experts recommend adopting cautious and long-term investment strategies. One of the most important of these strategies is diversification within the investment portfolio across multiple sectors.