Global stock markets fluctuate as investors seek safe-haven assets

Global equity markets have experienced another round of sharp volatility in recent weeks, driven primarily by escalating geopolitical tensions, tightening monetary policies across major economies, disruptions in global supply chains, and a rapid decline in overall risk appetite. Investors are increasingly concerned that ongoing conflicts may push energy prices higher, restrict international trade, and reignite inflationary pressure. Such developments could force central banks to maintain or even extend their tightening cycles, further weighing on equities worldwide. Meanwhile, several Federal Reserve officials have emphasized a hawkish stance in recent speeches, intensifying worries about liquidity pressures and triggering broad selling across high-valuation sectors, particularly technology stocks.

As market uncertainty surges, traditional safe-haven assets have once again attracted significant capital inflows. Gold and government bonds have shown strong performance, with gold prices rising 3.5% over the past week—the largest weekly gain in nearly two months—while U.S. Treasury yields have declined as investors sought security. The 10-year Treasury yield, in particular, recorded a substantial pullback. Analysts expect this risk-averse sentiment to persist until there is a clear signal of policy stabilization or visible improvement in geopolitical conditions. During this period, rapid shifts in capital between equities and bonds may continue to amplify market volatility.

Sector performance has also become increasingly divergent. Energy and defense stocks have benefited from rising geopolitical risks, while interest-sensitive sectors such as technology, real estate, and discretionary consumption have suffered deeper losses. In addition, multinational corporations are lowering their earnings forecasts, highlighting the impact of global uncertainties on operations for the upcoming quarters. These downgrades have further undermined market confidence, prompting investors to rely more heavily on macroeconomic indicators and policy guidance to reassess risk.

In such a turbulent environment, diversified asset allocation and effective risk management are more important than ever. Experts recommend that investors approach the current market through three key strategies: (1) Strengthen portfolio resilience by increasing exposure to low-volatility or inflation-hedging assets such as gold, short-term bonds, and defensive sectors; (2) Avoid excessive trading during periods of high volatility and refrain from panic selling or blindly following market sentiment; (3) Build strategies based on personal risk tolerance, including phased investing, disciplined stop-loss mechanisms, and avoiding overconcentration in any single sector. Despite near-term uncertainty, long-term opportunities remain intact. Structural trends such as artificial intelligence, renewable energy, and medical technology may benefit from more reasonable valuations following this correction.

Deep Analysis: From a global portfolio perspective, the current swing reflects a “confluence of liquidity stress and geopolitical risk” rather than a conventional correction. The next phase of market movement will depend on three critical variables: whether geopolitical tensions escalate further, whether major central banks begin diverging in policy direction, and whether corporate earnings can remain resilient in a high-rate environment. If geopolitical risks ease, inflation moderates, and policy guidance softens, a gradual recovery in global equities may emerge. Conversely, markets may remain in an extended volatility cycle. For individual investors, the priority at this stage is to enhance risk awareness, avoid emotionally driven decisions, and focus on identifying long-term value assets instead of chasing short-term momentum.