A black swan is an extremely rare event with dire consequences.
It is impossible to predict in advance, although after the fact many people mistakenly claim that it should have been predictable.
Black swan events can cause catastrophic damage to the economy, negatively affecting markets and investment, but even the use of reliable modeling cannot prevent a black swan event.
Relying on standard forecasting tools can not only fail to predict, but potentially increase vulnerability to black swans, spreading risk and offering false security.
– The term was popularized thanks to Nassim Nicholas Taleb’s book The Black Swan.
China A-share is the shares of companies based in mainland China that are traded on two Chinese stock exchanges: the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE).
American Depository Shares (ADAs) refer to shares of foreign companies held by US depository banks and can be traded in the US, including on major exchanges.
Berhad (BHD) is the suffix used in Malaysia to denote a public limited company. The suffix Sendirian Berhad (SDN BHD) identifies a private limited company.
The Bombay Stock Exchange (BSE), founded in 1875 as an Association of Local Shareholders and Stockbrokers, is the first stock exchange in Asia and the largest securities market in India.
Disequilibrium is when external forces cause an imbalance between supply and demand in the market. In response, the market enters a state in which supply and demand do not match.