Black Swan Trading in the age of Volatility
We are living in an uncertain world - Global pandemic, money printing, job losses, recessionary economies and rising markets. By some accounts the corporate world has gone through a few years worth of technology driven transformation in the past 5 months. What this means is that a lot of businesses are growing exponentially and an equal if not more are likely to disappear. If you’ve been involved in the financial markets for a few years, you would have seen charts of how index constituents have changed every decade. All of us agree that the pandemic whether a white swan or black , is a once in 100 years event. I am also convinced when Nassim Taleb says that we’re just getting started and the world is likely to be an extremely volatile place in the coming years. For practically every such event on the negative side we have had warnings from the likes of Nouriel Roubini and Raghuram Rajan but I imagine it is easier to pretend that nothing bad is going to happen and carry on. The...