The market is emotional, not just rational
Hello friends of Project HOPE, good day everyone. I hope you're all doing well. Today I reviewed some economic news that caught my attention. The world is in turmoil, and this time not just because of wars or technology, but because of decisions that, although seemingly simple, are strongly shaking both the traditional and crypto markets.
It turns out that President Trump—yes, Trump again—came out with new tariff measures a few days ago, which caused a significant drop in many assets. The market panicked, as often happens when there's uncertainty, and this was noticeable in the traditional stock market, but also in the crypto market, which, although many believe is disconnected from the system, eventually reacts, and hard.
But the interesting part comes next. Yesterday, he announced that, for now, he's pausing the implementation of those tariffs. And it was as if someone lit a spark! The markets reacted violently to the upswing, as if everything was suddenly fine again. It's impressive how a single phrase, a single gesture, can move millions of dollars in a matter of minutes. It sounds like a movie, but it isn't.
This only confirms something many of us already suspected: the market is emotional, not just rational. It reacts more to headlines than to in-depth analysis. And it doesn't matter if it's stocks, bonds, or cryptoassets, they're all shaken by the mood of those in power.
Now, this isn't about demonizing Trump or blindly applauding him. We simply need to understand that these kinds of moves have global consequences. And we, as citizens and observers, must be vigilant. Not to predict the future, but to learn to better read the present.
So, we'll remain vigilant, because as I always say: the world is changing, and what seems stable sometimes only lasts for a few days.
I'll say goodbye. Have a great day.
