The bear market on Wall Street is not a “black swan.” This is important is for semantic clarity, if nothing else. The term “black swan” has been thrown around with such abandon in recent months that it’s in danger of losing all meaning.
There’s a more important reason not call this bear market a black swan: it creates unrealistic expectations about what can be achieved with black-swan protection strategies. Those strategies hedge against certain rare events, but not everything bad that can happen in the stock market.
The…
