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World markets are in a broad sell-off: share prices sit below their long-term trend, the "fear index" is elevated, and money is fleeing into the US dollar. This is not about one country — it is the weather in the whole financial system, and it usually reaches jobs, prices, and savings everywhere.
Time to act once this fires: days to a few weeks
Do not sell investments in panic — selling at the bottom is how paper losses become real ones. Keep your cash cushion where it is: stress periods are exactly what it exists for. Postpone big risky moves — quitting without an offer, loans, leveraged bets. If you invest a fixed amount monthly, keep the schedule. Expect pressure on emerging-market currencies: check the currency-crisis playbook for the country you live in.
Check how much risk your savings carry
Open your broker or pension app and look at the share of stocks and stock funds. If a 20-30% drop in that part would break your plans or your sleep, the share is too big — but fix that gradually, over weeks, not in one panicked day.
Do not try to guess the bottom
Moving everything to cash "until it calms down" means deciding correctly twice: when to leave and when to return — almost nobody manages both. If you invest regularly, the boring schedule buys cheaper while others panic; history rewards exactly that — as long as the money sits in a broad, freely tradable market. One country's index is a different bet: it can stay below its old level for years once inflation is counted, and access to it can be closed by a rule rather than a price. Patience works for a diversified portfolio; it is not a substitute for having one.
Watch your local currency, not only the markets
When world markets are stressed, money leaves riskier economies first, so the currency of the country you live in may slide even if its economy looks fine. If your country's currency-crisis status also worsens, act on that playbook early.
The macro conditions that define this scenario. Each marker's share is how much it adds to a country's score when its alarm line is crossed.
| Indicator | Alarm line | Share of the score |
|---|---|---|
| S&P 500 vs its 200-day average | below -5%, for 5 periods in a row | 50% |
| Market volatility index (VIX) | above 30 points, for 3 periods in a row | 25% |
| US dollar index (broad) | a rise of more than 4 points above its recent low | 25% |