FNArena’s Weekly Insights – March 17 2025
In this week’s Weekly Insights:
By Rudi Filapek-Vandyck, Editor
Financial markets are now, broadly measured, divided into two categories of people, as is in fact the global population, including those who do not actively invest:
-those who look at events unfolding from the perspective that nothing fundamentally has changed, waiting for ‘old’ dynamics to re-assert themselves in due course
-those who instinctively, or otherwise, sense things are changing, but there are no answers yet available as to what exactly the end outcome might be
The division between these two groups of people is nothing new. This happens every time financial markets change direction and composure. It’s human nature to stick to the familiar script and view the world through an unchanged lens long after the facts have fundamentally changed.
It’s one of the key reasons as to why bear markets, in particular in the early stages, experience strong relief rallies. Everyone who is pre-dispositioned to see a retreat as a buy-the-dip opportunity is today yet again ready to allocate more money into cheaper-priced equities.
Let’s be honest about this; if we assume markets have been selling off merely out of fear and discomfort……
