Our friends at Call Levels have prepared a great infographic that takes you through a series of nine major Black Swan events that took place since the New Millennium to present day.
Black Swan events are typically random and unexpected economic events that have lasting catastrophic ramifications. ‘Greed’ and ‘fear’ are the two main elements driving this event. Almost a decade after the Global Financial Crises of 2008, markets still feel the financial and economic consequences of that Black Swan. No one expected Lehman Brothers to close because everyone thought it was “too big to fail.”
We all wish that we could predict a Black Swan event, but it’s impossible. The only way to mitigate any effect to our investments is to always stay informed and be wary of market movements. It’s also wise to stick to the golden rules of investing: diversification, hedging, rebalancing and ongoing monitoring.
Read on to find out how to keep you’re investments afloat during globally consequential awakenings.