A Black Swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight. The term was popularized by Nassim Nicholas Taleb in his book “The Black Swan: The Impact of the Highly Improbable” to describe unexpected events such as the 9/11 terrorist attacks and the global financial crisis of 2007-2008.While it’s impossible to predict when or where a black swan will occur, there are steps you can take to minimize their impact on your life. First, be aware that they exist and can happen at any time. Second, build resilience so you can weather the storm when one does hit. Finally, have a plan for dealing with black swan events should they occur. This could include having cash on hand in case access to money becomes restricted or investing in assets that are likely to hold their value during times of turmoil.
