Navigating Market Volatility and Behavioral Economics

This chapter explores the psychological barriers investors encounter during market downturns and the emotional shifts that lead to panic-driven decisions. It examines the 'Great Normalization' of economic conditions post-Great Financial Crisis, focusing on the implications of changing interest rates and the Federal Reserve's inflation targets. Additionally, the discussion addresses the impact of tariffs on global trade and the complexities of long-term asset allocation in an unpredictable market environment.