Know The Financial Market

The American stock market has been facing extreme volatility, with investors concerned about their investments . Although market oscillations are expected, the recent decline seems to be driven by a mix of economic, political, and international factors. Familiarity with these main reasons can enable investors to make knowledgeable choices and overcome the uncertainty. 1. Trade Policy Uncertainty Trade policies are the key to the performance of the stock market. Uncertainty in tariffs, trade agreements, or foreign relations causes uncertainty among investors. Companies that have global supply chains find it difficult to make future plans, and thus, investments decrease and economic growth slows down. In recent months, tariffs on foreign imports have been in the spotlight, raising concerns across different industries. Increased tariffs push up the cost of production, constricting company margins and compelling them to transfer costs to consumers. The domino effect undermines economic g...

Panic selling happens when investors rush to sell their stocks due to fear, uncertainty, or sudden market downturns. This reaction can lead to steep losses and increased market volatility. In this guide, we’ll break down why panic selling happens, its effects, and how investors can navigate these challenging situations wisely. What Causes Panic Selling? Panic selling is often triggered by factors such as: 1. Economic Downturns – When the economy slows down or enters a recession, investors lose confidence and begin selling off their assets. 2. Market Volatility – Sudden and sharp fluctuations in stock prices can lead to panic-driven decisions. 3. Global Events – Events like wars, natural disasters, or pandemics create uncertainty, pushing investors to sell in fear of further losses. 4. Firm-Specific Bad News – An adverse earnings surprise or a management change at an individual firm sends investors running. The Consequences of Panic Selling Panic selling may make sense in the short t...

 ETFs have recently emerged as a very popular type of investment. First of all, this type of investment product offers flexibility and diversification using a variety of vehicles which can appeal even to an investor with different skill levels. In this blog, we will be finding out what an ETF is, including how they work, and its benefits. What is an ETF? An ETF is an investment fund traded like individual stocks through a stock exchange. The concept of an ETF is mainly to maintain a basket of assets which can include stocks, bonds, and commodities. The investment fund seeks to track an index, sector, or an asset class for the specific purposes.  How Does an ETF Function? This is how an ETF works: 1. Creation : An ETF is created by an issuer who determines the investment objective, strategy, and asset allocation for the fund. 2. Trading on an exchange : The ETF is traded on a stock exchange, where investors can buy and sell the ETF. 3. Buying and selling units: Investors can b...