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World Stock Markets: Fragile Balance, Swiss Council's Vigilance

Markets' instability can lead to sudden crashes. The Swiss Federal Council's exercises show how crucial preparedness is to manage these threats.

In this image there is a super market, in that super market there are groceries.
In this image there is a super market, in that super market there are groceries.

World Stock Markets: Fragile Balance, Swiss Council's Vigilance

World stock markets, much like an ice-cream cone balanced on its tip, are inherently unstable. Recent history shows they can collapse suddenly, as seen in 1929 and other crises. Swift, automatic computer trades can exacerbate this volatility.

Experts warn that markets can tumble when panic selling begins, as seen in the 1929 stock market crash. This was evident when passing a certain threshold led to a massive, inevitable disaster. In mechanics, there are three types of balance: flat and upright, neutral, and unstable, with stock markets resembling the latter.

The Swiss Federal Council has been proactive in crisis prevention. It has conducted integrated crisis management exercises, such as the 2025 Integrated Exercise (IU 25) on hybrid threats. These tests ensure the resilience and coordination of national crisis management structures and international cooperation.

The Swiss Federal Council's efforts highlight the need for constant vigilance and preparedness in managing world financial markets. Despite inherent instability, markets can be made more resilient through careful planning and coordination.

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