Market Volatility: Take the Defensive Approach
The equity market experienced a significant downturn last week, following a surge in frontline indices to all-time highs. Several factors contributed to this heightened volatility. Primarily, the recent escalation of tensions in the Middle East, particularly between Iran and Israel, cast a shadow over the global markets. Global stock markets, inherently risk-averse, react strongly to geopolitical instability, prompting investors to retreat from riskier assets like equities and opt for safer havens such as gold and US Treasuries.
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