Carl

Hey Lana, today's question comes from David in Boston who asks, What are capital flows?

What exactly is moving when people say money is flowing in or out?

So capital flows describe money moving between countries, markets or assets.

It happens when investors chase returns, safety or opportunity.

That money can flow into stocks, bonds, real estate or currencies.

Where it goes reflects confidence and where it leaves signals concern.

Markets rise and fall as that capital shifts.

We have a question from Ana in Madrid, and she wants to know, why do commodities like oil or gold rise when stocks fall?

So this all comes down to the fact that commodities respond to supply shocks and inflation fears.

Gold often benefits from risk aversion and currency concerns.

Oil can rise due to geopolitical or production constraints.

They move on different rules than equities.

That's why diversification matters.

Hey Lana, here's one from Paul in New York.

He wants to know, what are circuit breakers?

Why does trading sometimes just completely halt?

Yes, so circuit breakers pause markets during extreme moves.

They're designed to prevent panic-driven spirals.

The goal is cooling off, not manipulation.

Markets reopen once emotions settle slightly.