He said: “Such acute pandemic is unavoidable, the result of the structure of the modern world and its economic consequences would be compounded because of the increased connectivity and over-optimisation.” In another interview with The New Yorker, he said that black swan had become “a cliché for any bad thing that surprises us”. Instead, Taleb believes the pandemic is a “ white swan: something that would eventually take place with great certainty”. Last year, he told Bloomberg that he is “ irritated” about the misconception of covid as being a black swan event because goverments had in fact been previously warned about being prepared for such a crisis. In interviews given when the coronavirus pandemic worsened in March 2020, Taleb described the outbreak as “ preventable”. Why? Well, the man who coined the black swan theory in 2007, Nassim Nicholas Taleb, said there were three key ingredients that contributed to such an event: it is so rare that no one could have even anticipated it, its effects are catastrophic, and it is regarded as predictable in hindsight. But you may be surprised to know that the coronavirus outbreak is not classed as a black swan event. Of course, the Covid-19 pandemic may be the first example that springs to mind. These events have such magnitude that they can bring down economies, societies and people. The man who invented the black swan theoryīlack swan events are highly improbable, difficult to predict incidents that end up having drastic consequences.If you’re an investor looking for financially stable investments in the current economy, here are a few ideas to get you moving in the right direction.īefore discussing specific investments, it’s important to address one’s mindset. A market downturn is a tempting time to pull your investments. If you withdraw your wealth at the bottom of a dip, though, you’ll be fiscally punished for the move. Even pulling out part way into a drop can be disastrous if you don’t time things just right. Instead, adopt two important mental filters. First, unless you’re a day trader, try to make calculated, long-term investments and then leave them alone when you’re feeling emotional. Second, if you feel a certain investment was a bad idea, look for ways to pivot your strategy rather than abandon it altogether.Īs an example, cryptocurrencies have completely deflated in the first half of 2022. Rather than cut your losses, look for viable pivot opportunities. For instance, Red Swan CRE, a tokenized real estate marketplace, provides an investment option allowing consumers to invest in commercial real estate with cryptocurrency.
The marriage of traditional dependability with innovative potential is a solid choice for anyone looking to batten down the hatches with their crypto holdings. Growth stocks were all the rage during the bounce-back recovery early in the pandemic. Unpredictable options, especially in the tech sector, were fan favorites for investors everywhere.Ģ022 has been brutal on growth stocks so far, and the rising threat of inflation is causing many to shift away from the growth stocks that rewarded them so well in the past. Instead, many are opting for value stocks. These are simply stocks that are trading at a cheap value when compared to things like short-term earnings and the potential for long-term growth. Stocks like these tend to weather inflationary periods better. They belong to companies that are well-known entities, can raise prices easier, and maintain value.ģ.
Find Safety With Other Traditional InvestmentsĪlong with value stocks, there are many other areas of the economy that attract investor dollars during turbulent, inflation-prone times. One example is Treasury inflation-protected securities. These operate like other fixed income investments with one important distinction. They adjust their principal amount if and when inflation becomes a factor. Real estate (via tokenized real estate as well as traditional financing options) also remains a tried and true investment choice.
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