— ADVERTISEMENT —
BEWARE OF FINANCIAL “BLACK SWANS”
Savy investors understand that Bear Markets destroy Financial wealth. Although the media loves to overhype volatility and speculation as the “end of the Financial World” as we know it, reality shows us that 10 – 20% market corrections are now commonplace! In 2022, Financial Markets lost over $280 billion in client value and Markets are still standing! However, there is no doubt that significant wealth will continue to be lost as well as gained going forward!
When a buildup of negative factors align against Markets, prudence dictates that responsible planning to protect your hard earned wealth should include a Diversification strategy highlighting safety and protection from volatility! $280 billion in lost Stock Market wealth, the real threat of Recession, a potential 5 year FLAT RECOVERY, high interest rates and stubborn inflation certainly count as flashing red lights for Markets going forward!
While high interest rates and inflation are significant enough on their own to adjust Markets downward, perhaps no single event presents more volatility and danger to Personal Assets and future Wealth Accumulation than “Black Swan” events!
The term “Black Swan” event was coined in 2001 by a prominent Wall Street trader. The definition of a financial Black Swan is “a fast forming, supremely negative event leaving widespread destruction with a notoriously uncertain exit outcome”! Of course, in hindsight, the warning signs of every previous Black Swan event have been proven predictable based on known negative conditions leading up to the event. Why then was no one “ringing the alarm bell” and warning the private investor? The answer could very well be that no one was listening over the hype, or it just may not have been in the Broker’s best interests to do so.
Recent examples of Black Swan financial events include the Covid Pandemic, which has cost Trillions of dollars in losses on just about everything! The current Russian aggression in Ukraine is the most recent Black Swan event currently causing havoc with the World Economy. The
DOT.com bubble in 2000 and the near World Wide Depression caused by the Financial crisis of 2007/8 are two other Black Swan events. In summary, over the past 23 years, there have been 4 near catastrophic Black Swan events that have rocked the North American economy. The after affects of 3 Black Swans are still being felt and the fourth, the Russian invasion, could cast its’ negative impact in the form of a flat recovery on the World Economy through to 2030! Markets are already factoring more risk into short term versus long term instruments. MARKETS HATE UNCERTAINTY!
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
