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The black swan theory or theory of black swan events is a metaphor that describes an event that comes as a surprise, ... in the scientific monograph "Silent Risk", [3
The Black Swan: The Impact of the Highly Improbable is a 2007 book by Nassim Nicholas Taleb, who is a former options trader. The book focuses on the extreme impact of rare and unpredictable outlier events—and the human tendency to find simplistic explanations for these events, retrospectively. Taleb calls this the Black Swan theory.
Taleb criticized risk management methods used by the finance industry and warned about financial crises, subsequently profiting from the Black Monday (1987) and the 2007–2008 financial crisis. [6] He advocates what he calls a "black swan robust" society, meaning a society that can withstand difficult-to-predict events. [7]
"The Black Swan" author Nassim Taleb says he's focused on hedging against a market collapse. He said the market is flashing parallels to prior crashes, noting that it is the most fragile in 20 years.
His hedge fund specializes in tail-risk hedging, a strategy that seeks to prevent losses from unforeseeable and unlikely economic catastrophes, also known as “black swans.”
Considering that black swan events are unpredictable, getting a better and more thorough understanding of what is going on in the world can be a helpful tool in assessing what risks or catalysts ...
The dragon king concept raises many questions about how one can deal with risk. Of course, if possible, exposure to large risks should be avoided (often referred to as the "black swan approach"). However, in many developments, exposure to risk is a necessity, and a trade-off between risk and return needs to be navigated.
Taleb, who advises Miami-based hedge fund Universa Investments, told an event hosted by the organization this week that national debt is a "white swan," a risk that's more probable than an ...