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A Guide to Global Financial Market Interconnectedness

December 17, 2024December 17, 2024 Denny MackFinance, financial market, Global Financial Market, Global Financial Market Interconnectedness0 comment

Global markets have never been more interconnected due to globalization of commerce, cross-border access and financial trading. This interdependence makes small disruptions have greater repercussions across borders and can trigger risk events that lead to major financial crises. Understanding these links is integral to global management, and there are effective techniques available such as the D-Y methodology that allow managers to gauge interconnectivity. 1. Stock Markets Global stock markets have never been more interlinked due to globalization, cross-border commerce and easy trading access. Minor disruptions can quickly snowball into larger…

Market Volatility and Instability

November 18, 2024November 18, 2024 Denny MackFinance, financial market, market instability, market volatility0 comment

Market volatility refers to the speed and magnitude of price swings among stocks or indexes in response to economic activity both positive and negative, including globalization and any subsequent trade wars. Market volatility doesn’t automatically equate to risk for investors; rather, it can signal greater uncertainty among them. There are various strategies available to you that will allow you to manage market volatility and still achieve your financial goals. Economic Uncertainty Economic uncertainty refers to the range of potential outcomes for a country’s economy, which encompasses both known unknowns –…