In the unpredictable world of finance, market volatility is a constant companion. It refers to the rapid and significant fluctuations in asset prices, driven by economic data , investor sentiment, geopolitical events, or shifts in global demand. While some view volatility as a threat, others see it as an opportunity. The real challenge for investors lies in understanding how to navigate these turbulent markets and adjust their strategies to safeguard capital while seizing profitable moments. What Drives Market Volatility Market volatility can arise from various sources. Economic indicators such as inflation, interest rates, and employment data often play significant roles. When inflation rises or central banks change monetary policy, investors react swiftly, causing price swings. Similarly, global events — wars, pandemics, or political elections — inject uncertainty, shaking investor confidence and fueling erratic market behavior. Another major factor is investor psychology. Mark...
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