This chapter deals in the highly unlikely. Some would say paranoid. But how bad can things really get and what might happen with our investments? We obviously don’t really know, but I think it is important to discuss investments in the scenario where all our plans are out the window and the world has gone haywire.
Not long before the financial crash of 2008 a book called The Black Swan – The Impact of the Highly Improbable (Penguin, 2008) written by Nassim Nicholas Taleb was published. The book caused quite a stir in the financial community. The title of the book refers to the common assumption that swans are white. Swans had always been white and it had almost become part of the definition of being a swan, ...