What is a 'Black Swan'?

A black swan is a rare and unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Black Swan A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the widespread insistence they were obvious in hindsight. Read More » Related to "Black Swan" Black Swan Events and Investment Black swans are world-changing events that are rare and difficult to predict, but they have serious implications for your investments. Read More » How to Avoid Emotional Investing Most investors buy high and sell low, but you can avoid this trap and potentially increase your returns by using some simple strategies. Read More » 10 Timeless Rules for Investors Find out what most investors are doing wrong, according to axioms from late market analyst Bob Farrell, and how you can do it right. Read More » SPONSORED BY FIDELITY INVESTMENTS Investing in Women in More Ways Than One Hiring and retaining women is essential to making financial expertise broadly accessible. Here's why Fidelity is prioritizing women's career growth and potential. Learn More » Related Definitions Behavioral Finance Behavioral finance is an area of study that proposes psychology-based theories to explain market outcomes and anomalies. Read More » Hindsight Bias Hindsight bias is a psychological phenomenon in which one overestimates how predictable an event was. Read More » Diversification Diversification is an investment strategy based on the premise that a portfolio with different asset types will perform better than one with few. Read More » Rebalancing Rebalancing involves realigning the weightings of a portfolio of assets by periodically buying or selling assets to keep the original asset allocation. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy