This diversification out of equities can help should these black
swan events occur.
However, for those looking to both hedge a weaker dollar, hedge inflation AND benefit from the sporadic panic moves that occur when a Black
Swan event occurs in the Us like a financial crisis or a terrorist attack, there are precious metals.
Not exact matches
In short, a Black
Swan is an unexpected
event (positive or negative) that was deemed unlikely and once it
occurs investor sentiment can shift dramatically and immediately.
Upon further reflection, I believe that the eventual «black
swan»
event will be an unanticipated derivatives explosion that
occurs from an out - of - control OTC derivatives position buried deep off - balance - sheet on one of the TBTFs.
These seemingly unpredictable, rare incidents — dubbed black
swan events — may be unlikely to happen on any specific day, but they do
occur.
The mainstream application to finance came about in 2007 when Naseem Taleb, In his book The Black
Swan: The Impact of the Highly Improbable, used Black
Swans as a metaphor for the low probability of destructive
events with extreme negative returns
occurring in financial markets.
«It is said that «Black
Swans» are unpredictable future
events, some of which may never
occur.