Updated on March 4, 2023
Tides are the result of the actions taken on the macro level that affect the nation and its economy as a whole. This impact cannot be generated or controlled on an individual level and therefore is referred to as tides as the natural tides in the ocean are also beyond the control of any single entity or individual.
The tides in the financial markets can be on account of various macroeconomic factors like trends in the sectors, economic cycles, and policy decisions by the dominant and developed countries across the world. These tides in the financial markets have to be monitored closely even at the microeconomic levels i.e., at the individual investor levels to ensure the viability of the portfolio and manage the overall risk of the same.