Earn & Invest 705. Ten Things About Black Swan Events
Feb 5, 2026
A lively discussion about rare, high-impact financial shocks and how they differ from predictable life risks. The host lists five century-defining market crises and compares white swans to black swans. Topics include withdrawal rules as shock protection, why over-worrying can harm your life, and how resilience and adaptability help you recover.
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Black Swan Defined
- Black swan events are extremely rare, highly impactful, and largely unpredictable occurrences that only make sense after they happen.
- Because they are unpredictable, trying to hedge them directly is usually futile.
Five Historical Market Shocks
- In the last 100 years there have been about five major financial black swan events including 1929, 1987, the dot-com bust, 2007–2009, and the 2020 COVID shock.
- The host points out many listeners lived through several of these events and survived financially.
Predictable Risks Matter More
- White swan events are predictable, common, and often financially devastating events like divorce or health crises.
- These predictable events are where risk mitigation efforts should focus.