In February, global stock markets experienced a rollercoaster ride, with US tech stocks taking a significant hit. The Nasdaq Composite dropped by 5.5%, and heavyweights like Nvidia saw their shares tumble almost 30%. Broader market indices, such as the S&P 500, also declined as investors reacted to changing economic landscapes and evolving market sentiments. This uncertainty was further fueled by escalating trade disputes, notably President Trump’s proposed tariffs on goods imported from Mexico and Canada, which stirred investor concerns and added pressure to US stocks.
On the flip side, Chinese equities proved to be a beacon of positivity. Offshore Chinese stocks climbed nearly 20% from the start of the year up to February 28, 2025, buoyed by enthusiasm for AI innovations and government measures designed to bolster the market. The stark contrast between US and Chinese market performances highlights the critical role a diversified portfolio plays in weathering these kinds of market swings.
As for what this spells for investors, experiencing market downturns like this is quite typical…
