- 07
- Apr.
- 2025
Monday, April 7, 2025, is a date investors are unlikely to forget. A Monday so dark it could make even the bleakest characters in Game of Thrones look tame in comparison. And for good reason: global markets—once-mighty beasts—were reduced to a state as grim as a low-budget horror film… except this time, the horror was financial.
The rollout of new tariffs under Donald Trump's leadership has been enough to trigger what many are now calling an economic apocalypse. Global financial markets began tumbling as early as Friday, and it has only deepened this Monday. The Paris stock exchange has already wiped out all its gains for the year, opening down 6.46%, while London’s fell by 3.86%. Germany’s main index collapsed by 10% in early trading. Amid the panic, markets across Asia also closed deep in the red. Hong Kong plunged nearly 13%, Shanghai’s benchmark index dropped 7.7% and Tokyo’s exchange fell by more than 7%, erasing the savings of countless retail investors. Spooked by the rapid downturn, investors fled financial markets in search of safer ground—in what little refuge the markets still offered.
Experts are raising concerns about the potential fallout from these aggressive trade policies. Some fear they could escalate into a large-scale trade war, with far-reaching impacts on global economic growth. Others believe these measures could have lasting effects on international trade relations.
Meanwhile, markets are trying to regain stability, but uncertainty remains. Investors remain vigilant, closely monitoring any upcoming statements from the White House.
The result: a loss of $6.4 trillion in just two days. Yes, you read that correctly! Billions of dollars disappeared almost overnight. The stocks of numerous companies plummeted at dizzying speeds. It was as though all global markets had coordinated a collective nap in the form of a crash.
Why all this devastation? Donald Trump and his controversial new import taxes have thrown a wrench into global trade. These new tariffs on thousands of products directly impacted businesses, exports and, of course, prices. In turn, investors reacted like characters from The Walking Dead stumbling upon an all-you-can-eat buffet—panicked and running for cover, selling off their shares in droves.
Add to that some geopolitical uncertainty and the looming threat of a global recession, lurking like a predator, and you have a volatile mix that sent markets into free fall. If the stock market were a party, this Monday was the chaotic aftermath—shattered glass, shouting and faces as pale as ghosts.
Moreover, Donald Trump's threats on Monday to impose a further 50% tariff on Chinese imports if Beijing does not remove its additional 34% taxes sparked waves of panic across Asian markets, triggering record declines. Even so, Trump remains resolute, insisting that these tariffs will generate $1 trillion for the US and compel thousands of companies to bring their production back home. As for the impact on financial markets, he claims he is unsure of what will happen, but insists that the US will emerge stronger. However, markets remain skeptical, and the current situation appears far from as stable as during the 2008 crisis. In a post on his Truth Social platform, Trump urged, “Don’t be weak! Don’t be stupid! Be strong, be brave, be patient, and greatness will follow.”
What About the Potential Repercussions?
Investors who had bet on promising stocks now find themselves with wallets as burdensome as a suitcase full of bricks. “When the major exchanges sneeze, everyone catches a cold. Uncertainty drives up inflation, and consumer goods prices are likely to rise with this new tax,” explains an investment advisor to This is Beirut.
Should investors sell or buy? What to do in such chaos? The answer: “That’s the big question. Should one quickly pull out while there’s still time? Not necessarily. Such fluctuations can also present lucrative opportunities for investors.”
Should investors buy discounted stocks, hoping the storm will pass quickly, or sell to salvage what can be saved, tucking it away under the proverbial mattress? “For those who favor quality stocks with long-term potential, it might be tempting to sell at a loss to avoid further declines. But caution is advised, as this strategy comes with risks—it could mean missing out on a potential recovery. Investors willing to take on more risks may find opportunities in these turbulent times. When the market dips, it’s often the right moment to buy undervalued stocks,” he explains. However, he cautions that any rebound could take time.
Who Is Most Affected by This Market Collapse?
While stock markets are a crucial part of the global economy, they do not directly involve the majority of the world’s population. In fact, access to the stock market is often limited to those with the financial resources and expertise needed to invest.
Recent studies show that approximately 10 to 15% of the global adult population has directly invested in stocks or other publicly traded financial assets. However, this figure varies widely across countries. For instance, in countries like the United States, around 55 to 60% of adults are engaged in the stock market, either through direct investments or via pension funds, retirement plans and others.
Conversely, regions such as Africa and some parts of Asia have much lower participation rates, often below 5%.
It is important to note that a significant portion of the trading volume on global stock markets comes from large financial institutions (banks, investment funds, hedge funds, etc.), rather than individual investors. As a result, while the number of individual investors remains relatively small compared to the global population, their influence on financial market activity is substantial.
However, the share of the global population involved in stock markets has grown significantly in recent years, driven by several key trends. Chief among them is the rise of online trading platforms, which made investing more accessible than ever. At the same time, financial literacy has improved, thanks in part to the widespread availability of information on social media platforms like YouTube, TikTok and X (formerly Twitter), where investor communities share insights and strategies. This shift has helped more young adults become familiar with financial markets and take an active role in investing. For instance, a 2021 study found that around 40% of millennials (born between 1981 and 1996) had invested in the stock market, compared to just 12% of baby boomers (born between 1946 and 1964).
As for Lebanon, although no official or detailed figures are available, estimates suggest that stock market participation remains relatively low—likely around 10% of the adult population. Equity investments tend to be concentrated within a small segment of individuals with both the financial means and the market knowledge to engage.
When Will the Markets Bounce Back?
The truth is, no one can predict the future with certainty. Still, if trade tensions ease and tariffs are reconsidered, a rebound could materialize in the months ahead. It will likely take several weeks—or even longer—for markets to regain stability. Meanwhile, patience and caution are key. For those able to withstand the turbulence, holding on to stocks and waiting for a potential rebound may prove to be the wiser course. As market history shows, periods of volatility are often followed by new opportunities. Sometimes, it’s in the calm that follows the storm that investors find their edge.
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