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When the World Trembles: How Geopolitical Fear Reshapes Global Markets

Global financial markets are not driven by numbers alone. They are powered by human emotion —especially fear . Whenever the world enters a phase of geopolitical tension—war, trade conflicts, sanctions, border disputes, terrorism, or diplomatic breakdowns—the markets respond not just to facts, but to uncertainty . This emotional undercurrent is what traders often call the Fear Factor . From the Russia–Ukraine conflict to tensions in the Middle East, from U.S.–China trade wars to regional instability in Asia, every geopolitical tremor sends waves through stock indices, commodities, currencies, and cryptocurrencies. Understanding this fear-driven mechanism helps investors read markets beyond charts. 🌍 What Is the “Fear Factor” in Markets? The Fear Factor is the collective anxiety of investors when future outcomes become unpredictable. Markets dislike uncertainty more than bad news. A known loss can be priced in—but an unknown future creates panic. This fear manifests in: Sudden sell-off...