Market volatility is not only a source of worries but also a window of opportunities for investors. Historically, periods of instability in the market are often followed by recoveries, providing a chance for gains to those who invest at lower price points.
Donald Trump has again brought back aggressive tariff policies as part of his political agenda. Consequently, market volatility has gained momentum driven by the first news that countries such as Canada, Mexico, Colombia, and China are being targeted with new tariffs. In his first mandate, similar policies disrupted the supply chains and stalled global economic growth, negatively affecting the Asian stock markets – especially in China, Hong Kong, and Southeast Asia.
Anxiety has resurfaced in the markets, driving sell-offs. In the first week of February, Japan’s Nikkei index closed down by 2.7%, while South Korea’s KOSPI dropped by 2.5% – bouncing back in the same week as soon as Trump announced a pause in tariffs on Canada and Mexico, with the Nikkei rising by 1.15% and the KOSPI increasing by 1.52%. The stock market surged on 5 March after the Trump administration granted a one-month exemption from tariffs imposed a day earlier on automakers. Specifically, the Dow Jones Industrial Average and S&P 500 jumped by 1.11%, and the Nasdaq rose by almost 1.5%.
Shifting mindsets
Market volatility is not only a source of worries but also a window of opportunities for investors. Historically, periods of instability in the market are often followed by recoveries, providing a chance for gains to those who invest at lower price points. The rise of dynamic foreign players like DeepSeek and Xiaohongshu (小红书)— even as privately held companies — into global prominence has sparked a fresh wave of investor enthusiasm for innovative opportunities beyond traditional powerhouses like Tesla and Apple. Once dominated by US giants, investor outlook is now shifting towards international markets, fuelled by a growing appetite — particularly among Gen Z investors — to diversify portfolios and tap into the potential of their favourite global brands and industry disruptors.
A clear example of this shift is BYD, the world’s largest plug-in hybrid electric vehicle manufacturer, listed on the Hong Kong Stock Exchange and the Shenzhen Stock Exchange. The anticipation for BYD’s new intelligent features sent share prices soaring by 21% in the first week of February. This demonstrates that the current generation of investors, experienced or new, are not satisfied with just watching from the sidelines; they actively seek ways to invest in the companies shaping the future, wherever they may be.
Innovation is a key driver to capitalise on market volatility.
While precise quantitative data on the adoption of fractional shares from 2022 to 2024 is limited, a study from the University of Notre Dame indicates that platforms like Robinhood have seen a significant increase in the ownership of high-priced stocks since 2019. This trend suggests that fractional trading has been a key enabler, allowing retail investors — particularly younger, tech-savvy individuals with limited capital — to gain exposure to previously unaffordable shares.
New asset classes, broader international market coverage, and fractionalisation enable investors to diversify their portfolios while reducing entry barriers for both seasoned and novice investors. Furthermore, new solutions like micro-investing create wealth opportunities for new investors while ensuring more manageable risk profiles.
Innovation benefits investors by allowing them to capitalise on periods of tumultuous market changes while equipping banks, brokers, asset managers, and fintechs to tap into a wave of tech-savvy new investors and re-engage experienced ones.
The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of GTN. Any opinions, findings, conclusions, or recommendations expressed are solely those of the author and may not represent the views of GTN. This article is for informational purposes only and should not be considered professional or financial advice. Readers are encouraged to seek independent professional advice before making any decisions. Additionally, the fractional trading services mentioned are offered by GTN’s subsidiaries and are subject to applicable regulations.
References
https://www.asahi.com/ajw/articles/15610865
https://www.chosun.com/english/market-money-en/2025/02/03/HSPS5EIHYJG3HDW6DQGWVHDJPE/