Trading Justice 339: Black Swan

In this episode, we discuss Black Swan events. Over the weekend, a coordinated drone attack on Saudi oil facilities sent the price of oil skyrocketing. Is it a Black Swan event? Black swans are extremely rare with severe consequences. It cannot be predicted beforehand. These events can cause catastrophic damage to an economy. We discuss this event, and whether it was or was not a Black Swan and then we discuss the overall approach a trader should take when thinking about Black Swan events. The term was popularized by Nassim Taleb. He argued that they are impossible to event, but it is important for people to always assume a Black Swan event is a possibility and to plan accordingly. Examples of Black Swans include the Financial Market crisis in 2008,the 9/11 attacks, Brexit andthe 2001 Dot Com Bubble crash.

Before we get into the feature presentation, the team discusses the current market conditions during our Market Skyline. We review the price action in stocks, commodities, currencies and the news surrounding the markets and give you guys our full analysis.

Lastly, we play a game of ‘Five Quick Takes’ where Coach Mark asks Matt and Tim to react to 5 recent stories in the news. Is brick and mortar retail dead? Should the market be at all time highs when we see economic weakness around the globe? Will marijuana stocks recover? Will the Trade War end during the Trump presidency? Are we hiding anything in Area 51? Listen in for some fun analysis and spirited discussion.