Investing Dictionary
Risk

What is Black Swan?

A rare, unpredictable event that causes massive market disruption

Full Explanation

A black swan is an extreme, unexpected event nobody saw coming — like the 2008 financial crisis or COVID-19 crash. The name comes from the old assumption that black swans didn't exist.

Pro Tip

You can't predict black swans, but you can prepare: hold cash, diversify, don't use leverage.

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