Have you been watching the markets lately and wondering what’s going on? The global market has been a rollercoaster—up one day, down the next. What’s really driving this turmoil, and more importantly, how can you navigate it? If you’ve found yourself asking these questions, you’re not alone. In this article, I’ll break down the key events that led to the recent market reset and share practical insights on how you can turn this chaos into opportunity. Ready to dive in? Let’s get started.
First, let’s get one thing straight about investing. You often hear people talk about market movements due to factors like US jobless claims, recession fears, inflation data, or company earnings reports. But here’s the truth: many just echo what they hear without really understanding it or checking its accuracy.
Most people focus on the details and miss the bigger picture. The key to investing isn’t just a company’s earnings forecast or a piece of economic data—it’s the market itself. And what is the market? It’s people. So, in essence, you’re investing in human behavior.
Sure, earnings and economic data influence market sentiment, but it’s human psychology—greed and fear—that truly drives market movements. That’s why Wall Street has a saying: “This time is different” is usually wrong. Human behavior has been the same for thousands of years. If something seems new to you, it’s probably because you haven’t seen enough financial history, and people call that “black swan event”.
A Black Swan Event?
Viewing the market through this lens changes your perspective. Take the failed assassination attempt against former President Donald Trump on July 13th. It was clear to me that this would shake things up, injecting a wave of uncertainty into the market. Why? Because Trump’s odds of winning the election skyrocketed, and a Trump presidency signals significant change to the financial
