... assets either barely drop during tough periods or may even tend to rise when the rest of the market is unstable. Classic defensive instruments traditionally include gold and highly reliable bonds (primarily government bonds). For instance, during a stock market crash, bonds typically experience minimal price drops. They can be sold without incurring significant losses, allowing the freed-up capital to be directed towards purchasing undervalued stocks, thus effectively reallocating capital. Gold often increases ...

... long-term potential due to its innovations and strong brand, which could attract funds back when market conditions improve. Parallels with Past Periods of Pessimism (2000 and 2008) The current situation recalls well-known phases of extreme negativity in the market. During the dot-com crash from 2000 to 2002, the technology-focused Nasdaq Composite plummeted by 78% from its peak – investors were wholly disenchanted with the prospects of even the largest companies. Similarly, at the height of the global financial crisis in 2008-2009,...

... differentiates successful individuals. Irrational Exuberance, Robert Shiller (2000) The author debunks the myth of market rationality, using specific figures and facts to demonstrate how purely emotional factors have led to the creation of bubbles and historic market crashes.

... confidence in the stock market. Many fund managers are reassessing their hedging and diversification strategies. Defensive assets are gaining popularity: gold, high-rated bonds, and cash. Historical Context: Comparison with 1987 The last time a similar crash occurred was in October 1987, when the Dow Jones fell by 22.6% in a single day. While the current decline is less severe, the movement structure indicates systemic tension. Forecasts and Scenarios Base Scenario: Market stabilization given support from the Federal Reserve and a measured tone on interest rates. Negative Scenario: Further decline of the index to the levels of the second and third circuit breaker. Positive Scenario: Upswing based on strong earnings ...

... capitalization. What Risks Does This Concentration Bring? The Market Becomes Less Diversified When a few giants control the stock market, it increases the overall systemic risk. If one of these companies faces a crisis, it could sharply collapse the entire market. Analogy with the Dot-Com Bubble of 2000 Before the crash in 2000, the concentration of the top 10 companies reached 73%; now this figure has exceeded 75%. Historically, such high levels of concentration have preceded market corrections. Rising Economic Dependence on a Small Number of Companies While the ...