Posted on 01/27/2020 7:01:16 PM PST by Mariner
A black swan event is a term used on Wall Street that refers to a rare and unpredictable occurrence that is beyond what is expected and has severe consequences. It's derived from European explorers who had previously thought that all swans were white and only white, as that was all they knew. They were overcome with shock and confusion when Dutch explorer Willem de Vlamingh discovered the existence of black swans in Australia.
The coronavirus is a black swan event, which may have serious consequences for your job, the stock market and global economy.
The United States economy has been strong with record-setting high levels of employment. The stock market has rebounded incredibly since the financial crisis, increasing the net worth of many Americans.
Historically, when the stock market goes relatively straight up, there is an expectation of a correction somewhere down the road. A correction is about a 5 to 10% drop in value of stocks. It's viewed as necessary, like clearing out the dead brush in a forest to prevent a future fire. Even the wisest minds on Wall Street admit that they can’t anticipate where the next correction will come from and what damage it may bring. It now seems that the coronavirus is that black swan event.
(Excerpt) Read more at forbes.com ...
The markets are the most susceptible to the passions of the day.
Let's hope there's no large scale institutional dumping.
The markets were due for a correction.
IMHO the virus is important but way over hyped.
Actually the market is overdue for a 10-15% correction.
Thanks for posting this.
possible... Communist China and this virus (which is out and spreading throughout the world now) ... big deals, both.
no way around it
The markets are the most susceptible to the passions of the day. <<
lol....Yup!...you wanna see a real “Black Swan Event”
Remove the President.....Coronavirus couldn't hold a candle to that....
s/
More people have died of the usual winter flu here in the USA than the Corona virus, But you never hear about that.
. . . or not.
I’m taking bets on how long it will be before they start claiming its due to Trump’s economic policies. They have been trying to talk the country into a recession for 2 years. They will weaponize the drop in the markets tied to the virus to bash Trump.
Its their only hope...
Maybe they build them all exactly alike ;~ )
“Cause this is f’d up...f’d up!”
Thom Yorke - Black Swan
https://www.youtube.com/watch?v=wepAxJ6BN30
It looks to me like the Chinese government is lying about the death toll and number infected. I get the impression that this virus is pretty bad.
The media is responsible for the hysteria they are trying to tank the economy because it will hurt Trump!! This is SO OVER HYPED just ridiculous!!! My God we have been through Ebola scares that weren’t this bad, EVERY time there is a hurricane the media is hysterical they are a bunch of FEAR MONGERS!!!
Yup.
As I was telling my friend on the way home from an 'all you can eat' Chinese dinner tonight....remove Trump and at 76 I'll still make it to DC and do 'something'.
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