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Mastering greed and fear in investing

Felicia Tan
Felicia Tan • 7 min read
Mastering greed and fear in investing
Global stock markets experienced sharp declines on April 2, following US President Donald Trump’s declaration of “Liberation Day” and the introduction of broad reciprocal tariffs worldwide. Photo Credit: Bloomberg
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The global stock market plunged into turmoil on April 2 after US President Donald Trump declared “Liberation Day” and announced reciprocal tariffs worldwide. The sell-off marked the sharpest decline since the market crash in February 2020, at the onset of the Covid-19 pandemic. 

Losses deepened when markets reopened on April 7 — a Monday — following the introduction of a global baseline tariff rate of 10% on April 5. The resulting three-day slide was again described as the most severe since Black Monday in 1987.

The Singapore market also plunged on April 7, with the benchmark Straits Times Index (STI) down by around 8% by the midday break. While markets saw a brief respite on April 8, the downturn resumed as higher “reciprocal tariffs” took effect across various countries. The renewed slide left investors questioning whether the worst was over or if further losses lay ahead.

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