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UNDERSTANDING
BLACK SWAN
EVENTS
Darcy Bergen
Introduction
• Seasoned financial planner Darcy Bergen has led operations for
Bergen FinancialGroup for over 15 years. In addition to advising
clients regarding their long-term financial goals, Darcy Bergen
facilitates educational financial workshops and educates Arizona
residents on important investment concepts such as black swan
events.
Black swan events--which can include severe natural disasters,
political turmoil, and groundbreaking innovations--impact the
market significantly.These events are difficult to predict, as timing,
consequences, and other factors can never be wholly foreseen.
There have been several black swan events throughout recent
history.
Black Swan
• The rise and fall of the dot-com bubble resulted in soaring markets
followed by an economic crash.Although the chain of events were
similar to other bubbles, the new frontier of the internet and digital
technologies made the dot-com bubble difficult to anticipate. In
the end, the NASDAQ exchange lost nearly 80 percent of its value.
Another notable black swan event was the nuclear disaster in
Fukushima, Japan, which was the result of an 8.9-scale earthquake
and tsunami.The Fukushima disaster caused the NIKKEI, the
Japanese exchange, to tumble by 16 percent.This had a ripple
effect on markets worldwide.

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Understanding Black Swan Events

  • 2. Introduction • Seasoned financial planner Darcy Bergen has led operations for Bergen FinancialGroup for over 15 years. In addition to advising clients regarding their long-term financial goals, Darcy Bergen facilitates educational financial workshops and educates Arizona residents on important investment concepts such as black swan events. Black swan events--which can include severe natural disasters, political turmoil, and groundbreaking innovations--impact the market significantly.These events are difficult to predict, as timing, consequences, and other factors can never be wholly foreseen. There have been several black swan events throughout recent history.
  • 3. Black Swan • The rise and fall of the dot-com bubble resulted in soaring markets followed by an economic crash.Although the chain of events were similar to other bubbles, the new frontier of the internet and digital technologies made the dot-com bubble difficult to anticipate. In the end, the NASDAQ exchange lost nearly 80 percent of its value. Another notable black swan event was the nuclear disaster in Fukushima, Japan, which was the result of an 8.9-scale earthquake and tsunami.The Fukushima disaster caused the NIKKEI, the Japanese exchange, to tumble by 16 percent.This had a ripple effect on markets worldwide.