I am far more interested in finding ways to limit the exposure on the downside of a portfolio due to “black swan” events. The expression made famous by Nicholas Taleeb in his book The Black Swan. Such events would be defined as
- unlikely events with disastrous circumstances,
- bursting of bubbles, or
- other low probability events that could have disastrous consequences on a portfolio.
http://seekingalpha.com/article/185531-in-search-of-the-illusive-black-swan-hedge-one-idea-worth-trying
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