RE:Wht's the Black Swan event, Erin? Pls expand. Iran entering into a wider middle conflict.
China invading taiwan
DRC civil war escalation towards the west part of the country.
Trump winning the election
Financial contagion causing multiple banks to fail.
- A black swan is an extremely rare event with potentially severe consequences.
- It cannot be predicted beforehand, though after the fact, many falsely claim it should have been predictable.
- Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modeling cannot prevent a black swan event.
- Reliance on standard forecasting tools can both fail to predict and potentially increase vulnerability to black swans by propagating risk and offering false security.