Freedom24 - Trading on stock exchanges

In an interview with Wall-Street, a Romanian finance news outlet, Radu-Iulian Pădurean, Network Development Manager at Freedom24, shared his perspective on how investors can approach the current period of geopolitical uncertainty in the Middle East and the resulting market volatility.🌍 Commenting on market reactions during conflicts, he noted that stock market declines are a natural part of such periods. "The initial reaction was moderate. Historically, stock markets do not fall because of wars themselves, but because of inflation generated by expensive energy," he explains. He also highlighted a structural shift in capital allocation, stating that "capital is moving towards the defense 'ecosystem' (classical defense, cybersecurity, AI, satellites, energy infrastructure), while airlines and fuel-sensitive sectors remain vulnerable." He emphasized that impulsive selling, attempts to time the market, and abandoning diversification are among the most common mistakes investors make during volatile periods. Radu also stressed the importance of monitoring macroeconomic indicators. "I would start with energy prices, especially oil and natural gas. Energy is the channel through which geopolitical tensions quickly translate into inflation, higher costs for companies, and pressure on consumption," he says. He added that central bank decisions and economic growth indicators such as GDP and labor market data should remain key benchmarks for investors. 🔗 Read more on Wall-Street