#MarketTurbulence #MarketTurbulence

Causes of market disruption (based on key events):

President Trump's announcement of a 25% tariff on imports from countries like India and China, raising fears of a trade war. This increases corporate costs and slows the economy.

The Federal Reserve (Fed) raises interest rates or hesitates to lower them, making borrowing more expensive. Economic recession fears also increase volatility.

Disputes between the United States and China, in addition to disruptions in supply chains (such as in aviation or technology).

Investor technology and psychology lead investors to sell quickly due to fear (Fear & Greed), resulting in a rapid "crash." Automated trading (Algorithms) exacerbates the volatility.

Market impacts:

Sharp declines in stocks (like a 14% drop in the S&P 500 in March/April 2025), and an increase in bond prices as a safe haven.

Forced liquidations in cryptocurrencies like Bitcoin, and a collapse in stocks due to "de-leveraging" (reducing leverage).

Volatility in oil and gold prices, and declines in major company stocks like Nvidia or Singapore Airlines.

The VIX fear index reacts to high levels (like 50), with buying opportunities in discounted assets but with high risks.