Black swan stock market

An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb's book "The Black Swan: The Impact of the Highly Improbable.

Until then, their data told them that all swans were white, so the discovery was unexpected. A black swan in markets is an event that has not occurred in the past, thus rendering useless risk management models based on historic data. Such a risk model would assume that all swans were white.

Mr Taleb suggests his idea has been misunderstood. The problem, he told the CFA Institute in , is not that black swans occur often. Rather, it is that they have truly catastrophic and unpredictable effects when they do happen, and so risk managers should concentrate on guarding against them.

The Black Swan, by Nassim Nicholas Taleb Not so rare: Register Subscribe Sign in. Subscribe You are signed in.

Barclays on 'black swans' that could hit markets in - Business Insider

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9 black swan events that changed finance forever - Business Insider

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