How to Protect Your Investments in Volatile Times

Panic Is Avoided Through Understanding the Drivers of the 2025 Market Crash

In the last two months, global markets have shed an astonishing $5.5 trillion in value, with the S&P 500 and cryptocurrency markets taking the brunt of the losses. According to The Kobeissi Letter, this marks "one of the most sudden shifts in sentiment since 2020."

While mainstream headlines blame the Trump trade war, which began on February 1, 2025, the reality is far more complex. The real cause of this crash stems from a rapid and extreme shift in investor sentiment—from greed to fear—triggering a mass selloff.

Understanding the forces behind this collapse and how to protect your investments is critical. This post will explain what happened, how to spot warning signs in the future, and strategies for safeguarding and even growing your portfolio during turbulent times by effectively “buying the dip.”