Preparing for the next Black Swan

Kevin Depew, editor of Minyanville posted an interesting article today at:    http://www.minyanville.com/businessmarkets/articles/collapse-financial-collapse-economic-collapse-depression/6/1/2011/id/34883

And we at SmartStops ask the same question – have people become immune to all the potential downfalls awaiting them?  Is that what causes them to try to ignore the risk around them?  As if they don’t acknowledge it , it doesn’t exist?    How do we get investors to feel that risk management is second nature to them when investing in the stock markets?  So they can invest wisely and with less “fear”.

..” It’s been 11 years since the dot-com crash. Our 2006 gloom no longer feels misplaced; it feels comfortable, safe. Yes, there are times to prepare for the worst.”    He ponders if we shouldn’t thus also have white swan focus, in seeing this Bloomberg ad:

“Preparing for the Next Black Swans”

Bloomberg Money Managers Conference

When 14-Jun-2011 (Tue) 07:45 – 13:00
Where State Room, 60 State St., 33rd Floor
Boston, MA, United States
Entry Fee USD 695.00

“I have to believe that perhaps the notion of a black swan has not been fully explained? Or if it was, then the concept itself not wholly grasped?”

The event description:

“Preparing for the Next Black Swans”: The year 2011 will most certainly be remembered for its Black Swan events, including the spreading unrest in the Middle East and the earthquake in Japan. Money Managers need to be prepared for unexpected events as they position their investments across asset classes. The Bloomberg Money Managers conference will bring together mutual fund, hedge fund and private equity investors to consider events that could rock the markets, portfolio strategies for managing the unforseen and the future of actively-managed investing.”

“Can you see the shift that has occurred? If you have not participated in or observed the financial services and money management industry throughout the 1990s and before, perhaps not. Prior to 2000, the very concept of a black swan — an unexpected event that has an outsized impact and which endures post-impact rationalization as wholly expected (a la dot-com crash, subprime collapse, debt crisis, etc.) — was anathema. The models accounted for all possibilities. Math and science, financial engineering had permanently eliminated tail risk. This is not overstating things. Fast-forward a full decade, black swans are everywhere, their ubiquity serving as a sort of psychic balm. Today, every unpredicted event is black swan-worthy.”

Tags: , , , , , , , , , , , , , , , , , ,

About SmartStops

We are a new service launched to the market in July of 2008. Our mission - to help ensure stock and etf investors stay protected in their positions at all times. see www.smartstops.net

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: