This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
Situations that can cause market volatility include:
- National calamities, such as a negative economic situation or a natural disaster
- Economic growth changes, which are reflected in reports such as employment numbers, consumer prices and manufacturing activity
- Geopolitical risks, such as wars, terrorist acts and tensions between countries
- Political factors, such as announcements affecting a country’s leadership
- News, such as a scandal hitting a large, publicly traded company
- National monetary policy, such as actions taken by a country’s central bank (for example, the U.S. Federal Reserve)