Why Every Investor Needs to Understand Tail Risk (or Risk Blowing Up)

The curse of Black Swans, and building Antifragility

Photo by Roy Muz on Unsplash

Put simply, tail risk is the possibility of a highly unlikely event happening. The term has its origins in the statistical idea of a bell curve, which is (unfortunately) omnipresent in investing, risk modeling, and many aspects of daily life.

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