What is a Black Swan Theory? (in 60 seconds)
Published in
1 min readMay 23, 2020
A Black Swan event is a financial term explaining an extremely random and unpredictable catastrophic event. These events have severe impact, and many claim that they were actually predictable in hindsight. The term was coined by Nassim Nicholas Taleb, a finance professor, author, and ex-Wall Street trader.
Examples:
- Global Corona Virus epidemic.
- The dot-com bubble of 2001.
- U.S. housing market during the 2008 crisis.
- 2007 Zimbabwe 79.6 billion percent hyperinflation.
