The impact of a "Black Swan" event

03/10/2022 09:30 AM By Matt Ratliff

A "Black Swan" event is like a "Black Cat" - something that scares all investors and sends many running for the doors.  You may define a "Black Swan" event differently than others but basically it is a dramatic unpredictable market event that can painfully shrink your portfolio, erasing years of hard fought gains and creating great personal doubt.  Since it is unpredictable, everyone is exposed to future "Black Swan" events.  The big question always is, "Since I can't predict them, can I at least minimize the impact of them?"  Watch this video for more...

What is a Black Swan event
A Black Swan event is a dramatic unexpected market event that can wipe out years of hard fought gains.  They can be short lived or last for many months.  Watch the video for some examples.
Can I avoid a Black Swan

Although you can't completely remove the risk of a black swan there is a way to lessen the risk, watch the video for more information.

Why is this a problem?

This is a problem because if you get caught on the wrong side of the black swan it could take years to recover. If that happens near your retirement age then it is an even bigger problem cause you may not have years to wait.

Is there a solution?

Well the Black Swan events will come.  There is no stopping them.  But there are things you can consider to minimize the impact, reduce your exposure, and shorten the recovery.  Watch the video and contact us to discuss.

Matt Ratliff