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● “Recession-Stagflation Fears Fuel Market Turmoil”

Global Economic Outlook and Strategies for Responding to Volatile Markets

Basic Principles of Past Investment Decisions and Future Predictions

The roots of investment decisions such as economic forecasts, financial markets, and stock investments are always found in past patterns.
Although investing is an act of looking to the future, the basic framework for predicting the future through past charts and corporate performance remains unchanged.
The post-World War II order and 70 years of free trade are also the basis of our judgment.
However, this market is distinctly different from the past in that it is a new uncertainty experienced in two to three generations.

Response to the US Economy, Tariff War, and Interest Rate Hikes

Recently, the US economy has been swayed by various factors such as the tariff war, interest rate hikes, and the overheated US stock market.
US stocks have historically risen for a long time without major adjustments, but this adjustment includes both short-term instability and long-term structural changes.
In particular, big tech companies have so much future expectations already priced in, so the impact could be significant during adjustments.
The adjustment patterns of growth stocks and past experiences in the interest rate hike phase require renewed attention.

Investment Strategies Amid Stock Adjustments and Stagflation Concerns

When interest rates rise, the valuation of tech or growth stocks is naturally readjusted.
Recently, stagflation fears have been forming in the US market due to tariff wars and other policy variables.
Stagflation refers to a situation where the economy slows down while prices remain high, causing both stocks and bonds to be adjusted.
Investors should consider fixed investment or risk diversification within their portfolios rather than individual stocks.
In uncertain market conditions, the key is to adjust your position with ‘my money that I can fix’.

Central Bank Policies and Global Financial Market Flows

Central banks have had a strong influence on financial markets since 2008.
Quantitative easing and low interest rate policies have temporarily boosted asset markets, but this time they could create a balance problem between inflation and economic slowdown.
The policy direction of central banks around the world, not just the US Federal Reserve, will be an important variable in the future financial market flows.
Ultimately, not only the US economy but also the global financial market is likely to face a new phase depending on the response of central banks.

Future Investment Directions and Conclusion

Investors always invest in future expectations, but this market faces different uncertainties than the past.
Even if the stock market undergoes short-term adjustments, it tends to trend upward in the long term, considering historical cyclical cycles.
The strong structural strength of the US economy and the flexibility of central bank policies can provide investment opportunities even in uncertainty.
Therefore, it is better to focus on diversified investment and risk management according to your investment principles rather than being swayed by short-term volatility.

< Summary >
Unlike traditional investment principles that predict the future based on past experiences, this market is characterized by new uncertainties experienced in two to three generations.
The US economy is undergoing short-term adjustments amid complex variables such as tariff wars, interest rate hikes, and stagflation concerns.
The policy direction of central banks and changes in the global financial market are expected to have a significant impact on stock investments and asset allocation in the future.
Rather than being swept away by short-term volatility, you should seek long-term opportunities through investment strategies and diversified investment that you can endure with your money.

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