To The Moon

Since 02 April 2025, I believe some of us had been navigating through this unpredictable market situation, while we need to control our fear.

I think we might want to look at it from a more relaxed and fun angle, I have a brief chat with a friend over the weekend, can the current market turbulence be compared to the Squid Game?

The current market turbulence mirrors the unpredictability and high-stakes tension of Netflix's Squid Game, where participants face sudden, life-threatening challenges.

While financial markets do not involve literal life-or-death scenarios, the psychological stress, rapid shifts, and survival instincts resonate deeply. Here is how the analogy unfolds

Unpredictable "Games"

Squid Game: Each round introduces a new, unknown challenge (e.g., Red Light, Green Light) with cryptic rules.

Market Turbulence: Investors face sudden shocks like inflation spikes, geopolitical conflicts (e.g., Ukraine war), or regulatory changes. These events act as unpredictable "games" where rules (market dynamics) can shift overnight.

High Stakes and Elimination

Squid Game: Players are eliminated if they fail; survival requires quick adaptation.

Market Turbulence: Companies or investors face "elimination" through bankruptcy or steep losses. For example, meme stock crashes or crypto volatility can wipe out portfolios, rewarding only those who adapt swiftly.

Psychological Stress and Decision Fatigue

Squid Game: Constant fear and pressure lead to impulsive or strategic decisions.

Market Turbulence: Emotional trading (e.g., panic selling during a crash) or FOMO-driven investing (e.g., chasing trends) reflects similar stress, testing investors’ mental resilience.

Shifting Strategies and Alliances

Squid Game: Players form alliances, but trust is fragile as rules change.

Market Turbulence: Investors might diversify portfolios, hedge risks, or collaborate with advisors, yet external factors (e.g., Fed rate hikes) can upend these strategies, demanding agility.

Invisible Controllers

Squid Game: The "Front Man" and overseers manipulate the games.

Market Turbulence: Central banks, governments, or algorithms (e.g., high-frequency trading) act as unseen forces, swaying markets through policies or automated trades.

Survival of the Fittest

Squid Game: Luck, skill, and adaptability determine survival.

Market Turbulence: Investors who stay informed, leverage data (e.g., AI-driven analytics), and remain flexible (e.g., pivoting to defensive stocks) are more likely to endure downturns.

How We Can Stay Sane With This Market Turbulence

I would like to share that I used the $Cboe Volatility Index(VIX)$ to see how the situation unfold because over the weekend, we have the news that President Trump is removing tariffs on electronics and chips, but do note that there might be a sectoral tariffs on the semiconductor and electronics products, so currently VIX is going down, but have not go below 30, which is the level I will watch closely to see if a longer time period rally would formed.

In the meantime, you might want to consider looking at $2X Long VIX Futures ETF(UVIX)$ which would give a pretty good gains if there is further probability from a new round of sectoral tariffs. I will share more next week when we heard again from President Trump on Monday (14 April).

Summary

While the Squid Game analogy should not trivialize market complexity, it underscores the essence of navigating uncertainty. Both realms reward preparedness, adaptability, and calm under pressure.

As investors, i believe that by embracing volatility as a series of strategic "games” while acknowledging the role of luck and external forces, does help us to reframe challenges into opportunities for resilience.

Appreciate if you could share your thoughts in the comment section whether you think market turbulence is like a game and how we played the game would help us to reframe challenges into opportunities for resilience.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.