What If Now Is a Black Swan?

There is an economic term called the black swan.
It literally means a swan that is black.
In what sense is this term used?
If you are investing, it is worth knowing what the term black swan means.
For a bit of general knowledge, let's briefly look at its origin: long ago, Europeans believed that all swans were white.
Later, as they crossed the seas and traveled to various continents, they discovered black swans on the Australian continent.
Everyone was astonished to see the black swans.
The black swan they had only imagined actually existed.
In this way, a completely unexpected, startling event is called a black swan in economic terms.

Past examples include the 9/11 attacks in the U.S., the U.S. financial crisis, the COVID-19 outbreak, and the Great East Japan Earthquake.
These were events that were hard to imagine or predict. When such events occur, investment products fluctuate wildly.
No one knows when or how a black swan will occur, but once it does, it causes large swings in gains and losses over a short period.
Therefore, if you plan to keep investing, diversifying your portfolio to prepare for black swans can be an important part of investing.
Looked at differently, some people may even hope for a black swan to occur.
Considering that the stock market rose sharply after the COVID-19 pandemic broke out, that would have been the right time to invest.