20 May How To Cope With Share Market Turbulence
The coronavirus pandemic is just one example of how events beyond our control can impact share markets. The Australian market (ASX200) fell from a post GFC high (February 20), by 37% in just over a month- one of the fastest sell offs since the 1987 crash; then rallied over 20% in April, 2020.
Events such as the coronavirus pandemic are also known as a “black swan”, a term created by risk analyst Nassim Nicholas Taleb, to describe occurrences that come out of the blue. Investing in shares is about the future, and nobody has a crystal ball, so “black swan” or what the experts call risk-off events can catch investors unaware.