Market in motion: how do you respond?

The first quarter of 2025 began promisingly for financial markets, but we are now in the midst of a major correction. It is very reminiscent of the situation last summer, when stock prices worldwide also came under pressure. What is going on and where can we go from here? In this newsletter, we take you through the main developments.

The new U.S. president has already had a major impact on the global economy. While his initiatives may be beneficial to the US economy in the long term (thanks to tax cuts and “Make America Great Again” policies), Trump’s new increased trade tariffs are creating significant uncertainty in the short term. Geopolitical risks are increasing, and the market often reacts negatively to unpredictability.

In addition, the new, increased trade tariffs also reinforce concerns about global inflation. Inflation was already rising in many parts of the world before these trade wars began. While the impact of the tariffs on global economic growth and corporate profits may be muted, they are often seen by investors as adding inflationary pressure, contributing to the market downturn.

Add to these macroeconomic uncertainties that on Friday, Feb. 21, the biggest crypto crash of all time took place on crypto exchange Bybit. Despite Bybit’s swift security measures (customers are as yet unaffected by the hack), this event puts additional stress on the crypto market.

In addition, it must also be said that cryptocurrency prices rose significantly in a short period of time after the summer. Investors who benefited from these increases are now motivated to take profits. These profit-taking actions are driving prices down further.

Although the market is currently under pressure, positive signs for the future remain. The likelihood that central banks, such as the Federal Reserve, may cut interest rates further remains. In fact, the market expects two interest rate cuts this year, which could help support the economy if U.S. economic growth slows further. Moreover, the likelihood of a recession seems remote at this time. Companies remain profitable, and the U.S. labor market remains exceptionally strong, providing important support for economic growth.

Although the markets are currently in a correction, it seems unlikely that we have reached the end of the bull market. The situation is reminiscent of previous periods of uncertainty, such as the turbulent summer of 2024, when markets also faced uncertainties around inflation and the U.S. election year. After that period, we saw a strong recovery in prices in the fall, and analysts expect that this scenario could occur again.

In short, the market is volatile right now. Volatility (the volatility of the market) presents opportunities for investors who are well prepared. By investing in liquidity pools with Poolder, you can take advantage of the extra volume created on volatile days while limiting your risk. In addition, by investing in a staggered manner – for example, by making periodic investments – you can better spread the risk over time.

Find out how you can profit from market movements with Pool Portfolios. Learn more about it on our Poolfolio page.