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Everyone here probably knows who Taleb is (regardless of whether you are a fan or not). You probably own a copy of his books as well (Fooled by Randomness and The Black Swan)
This article explains the rise in hedge funds specializing in tail-risk events or "black swan" events as it's usually known.
LINK preparing-for-the-next-black-swan: Personal Finance News from Yahoo! Finance
After a decade-long bear market and two years of turmoil that saw the stock market plunge by 57%, investors are betting on still more financial pain in the months ahead.
Bond yields are near record lows. Gold continues to soar. And stocks are whipsawing as traders try to predict the direction of an economy that remains, in the words of Federal Reserve Chairman Ben Bernanke, "unusually uncertain."
But not every investor is trembling with anxiety over the next financial blowup. Some are embracing the market's volatility—and constructing portfolios to profit from it.
A growing number of money managers and financial firms are rolling out investment products designed to exploit big declines known as "black swan" events. Most of the products are geared toward institutional investors such as pension funds, endowments and high-net-worth families—but black-swan strategies are trickling down to Main Street as well.
This article explains the rise in hedge funds specializing in tail-risk events or "black swan" events as it's usually known.
LINK preparing-for-the-next-black-swan: Personal Finance News from Yahoo! Finance
After a decade-long bear market and two years of turmoil that saw the stock market plunge by 57%, investors are betting on still more financial pain in the months ahead.
Bond yields are near record lows. Gold continues to soar. And stocks are whipsawing as traders try to predict the direction of an economy that remains, in the words of Federal Reserve Chairman Ben Bernanke, "unusually uncertain."
But not every investor is trembling with anxiety over the next financial blowup. Some are embracing the market's volatility—and constructing portfolios to profit from it.
A growing number of money managers and financial firms are rolling out investment products designed to exploit big declines known as "black swan" events. Most of the products are geared toward institutional investors such as pension funds, endowments and high-net-worth families—but black-swan strategies are trickling down to Main Street as well.
