Why Markets Keep Falling: What’s Really Happening and What Investors Are Missing
Markets have been falling, bouncing briefly, and then falling again. For many investors, it feels endless. Stocks decline. Crypto weakens. Confidence erodes. So the real question isn’t “why did the market fall today?” It’s why markets keep falling over and over again . Let’s break it down clearly. 1. This Is Not Panic — It’s Deleveraging What we’re seeing is not a sudden crash driven by fear. It’s a slow, systematic unwinding of excess risk built up over years. For a long time, markets lived in an environment of: Cheap money Abundant liquidity Easy credit High leverage Now that environment is reversing. When leverage unwinds, markets don’t collapse once — they bleed lower in waves . 2. Interest Rates Are Still the Core Problem Even though investors keep hoping for rate cuts, financial conditions remain tight . Higher rates mean: Borrowing is expensive Corporate profits face pressure Valuations must compress Risk assets lose support M...
