Tuesday, April 11, 2017

Black Swans and Purple Swans

Black Swans are what, Nassim Nicholas Taleb, brilliantly explained are unexpected shocks to the economy and the stock market. He also explained how to protect against them in terms of one's investing strategy. That said, what might happen as a result of recent events in Syria or in North Korea would not be a Black Swan event. It would be what happens when ineptitude deals with the world, which we now call Purple Swans. We don't give investment advice here. But, what we will say is, Purple Swans are Black Swans for people who don't worry about Black Swans. 

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