Black Swan Takes Wing

February 23, 2011 | 0 comment

World markets are all lower yet again, as concerns regarding the Middle East continue to make the rounds.

However, the weakness isn’t as material as it was yesterday, but then again, to have two or three or even four down days in a row…is just about unheard of in today’s markets.

But this is the case, and it is a case that has more merit, given concerns about rising crude-oil and gasoline prices and the ability of just such price gains to slow the world economy.

This is the “black swan” that author and hedge-fund manager Nassim Taleb made famous with his 2007 book The Black Swan, in which he noted investors never planned for “tail risk.” It’s a great read, and we heartily endorse it.

 

Richard Rhodes is the founder of Rhodes Capital Management, Rhodes Trading Group, and The Rhodes Report a macroeconomic and stock trading newsletter. The Rhodes Report seeks an absolute return through a long short strategy that trades equities, ETFs, and inverse ETFs that offer the greatest potential for positive portfolio returns in both bull and bear markets.

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