Cate caught a glimpse of a fabulous blog of Pete’s on his blogspot page… a sensible reminder to investors to consider a “black swan event”. It caught her eye because it’s a timely reminder that things *can* go wrong; and we all need to make sure we are prepared.

As Investopedia explains: “What Is a Black Swan?..

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight.

KEY TAKEAWAYS

• A black swan is an extremely rare event with severe consequences. It cannot be predicted beforehand, though after the fact, many falsely claim it should have been predictable.
• Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modelilng cannot prevent a black swan event.
• Reliance on standard forecasting tools can both fail to predict and potentially increase vulnerability to black swans by propagating risk and offering false security.”

Pete and Cate met back in 2017 and they have shared interviews, articles, webinars and budget nights, to name a few economist/geeky moments.

Their love of the Australian property market, combined wth their affinity for investment principles has helped them become firm friends and industry colleagues. Pete runs a fabulous daily blogpost, in addition to a Brisbane-based buyer’s agency business. The pair swap insights and opinions on a regular basis.

We hope you enjoy!