Silver Swans, Maginot Lines and the Unforeseen Risks of Collapse – Investment Watch
Many people have heard of Nassim Taleb’s black swan but fewer understand how few events qualify as black swans. Per Wikipedia, a black swan is an unpredictable or unforeseen event, typically one with extreme consequences, an event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight. Taleb’s black swan theory refers to unexpected events of large magnitude and consequence and their dominant role in hist...
Source: investmentwatchblog.com