[Nov 2025] Why is the Global Stock Market Shaking? Key Causes of the Crash and Future Outlook
Hello, this is Piry, a blogger and Bitget
influencer. :) Today, I want to discuss the synchronized global market downturn
that has been keeping many investors awake. As of late November 2025, many of
you might be feeling anxious looking at the "sea of blue" (losses) in
your portfolios.
I will break down why this is happening and
where the market is headed from short, medium, and long-term perspectives.
📉 3
Core Reasons Behind the Current Market Slump The "fear"
dominating the market in late 2025 isn't caused by a single factor. We are
witnessing a 'Perfect Storm' of several negative catalysts.
1. The Aftershock of 'Tariff Bombs' from
the Second Trump Administration The aggressive
tariff policies that began earlier this year hit the market hard again in
November. Specifically, as President Trump hinted at additional tariffs on
certain allies and agricultural products, fears of a full-scale 'Trade War'
have resurfaced, straining global supply chains and increasing corporate costs.
2. "Is AI Profitable?" – The
Expansion of the Big Tech Bubble Theory Skepticism
regarding the AI theme, which has driven the market for years, is growing.
While giants like NVIDIA and Microsoft have invested trillions, investors are
now asking, "When will we see the actual ROI (Return on
Investment)?" This has led to heavy selling in the Nasdaq and a
significant correction in tech stocks.
3. Diminishing Rate Cut Expectations and
Recession Fears Expectations for a December rate
cut by the Fed are mixed. With inflation remaining sticky and signs of a
cooling U.S. labor market alongside weak economic data from China, fears of 'Stagflation'
(stagnant growth with high inflation) are dampening investor sentiment.
🔮 Market
Outlook: Recovery or Further Decline?
- Short-term (1-3 Months): "Continued Volatility, Caution
Required" Expect high volatility until
the December FOMC results and year-end holiday consumption data are
released. Rather than trying to "catch the falling knife"
(bottom-fishing), maintaining cash reserves and observing the market is a
safer bet.
- Medium-term (6 Months - 1 Year): "Separating Wheat from
Chaff" By the first half of next year,
excessive fear will likely subside. A "performance gap" will
widen between companies generating real profit from AI and those relying
on mere hype. Focus on high-quality blue-chip and defensive stocks
(Healthcare, Consumer Staples).
- Long-term (1 Year+): "Slow Uptrend Amid Structural
Changes" In the long run, markets tend to
trend upward, but don't expect the 'Liquidity Party' of the past. As De-globalization
and higher interest rates become the 'New Normal,' we must take a
selective approach, focusing on sectors with clear growth engines like
Next-gen Energy, Defense, and Practical AI applications.
📝 Closing
Thoughts The current downturn is a 'reality check' for a market that has
run without rest. Instead of panic selling, now is the time to check if the
companies you own have the fundamentals to withstand these rough waves.
Remember: "Crisis has always been an opportunity for the
prepared."
Piry’s Insight: Historically, stock markets have always moved upward over the long
term despite high volatility. I believe this trajectory remains unchanged. If
you have invested in companies with strong fundamentals, enduring this
volatility is a viable strategy. Stay calm and stay the course.
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