Global events like wars, disasters, and policy changes affect stock markets by impacting investor confidence, economic stability, and corporate profits, causing price swings.
Types of global events affecting stock markets include economic (inflation, GDP), political (geopolitics, budgets), natural (disasters), technological (AI), and health crises.
Short-term effects cause quick market volatility, while long-term effects reflect gradual changes in economic conditions, business environments & corporate performance.
Geopolitical events cause market volatility by creating uncertainty, disrupting trade, and influencing investor sentiment, impacting sectors and global economic stability.
You can protect your portfolio by diversifying, reducing exposure to vulnerable sectors, maintaining liquidity & investing in safe-haven assets.