Black SwanWhat Does Black Swan Mean?
An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader. Investopedia explains Black Swan
Black swan events are typically random and unexpected. For example, the previously successful hedge fund Long Term Capital Management (LTCM) was driven into the ground as a result of the ripple effect caused by the Russian government's debt default. The Russian government's default represents a black swan event because none of LTCM's computer models could have predicted this event and its subsequent effects.
An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader. Investopedia explains Black Swan
Black swan events are typically random and unexpected. For example, the previously successful hedge fund Long Term Capital Management (LTCM) was driven into the ground as a result of the ripple effect caused by the Russian government's debt default. The Russian government's default represents a black swan event because none of LTCM's computer models could have predicted this event and its subsequent effects.
At almost the end of our stock game a natural disaster that could not have be predicted happened. The Earthquake that hit Japan on March 11th 2011, followed by a huge tsunami caused a tragic event. The stock market results in ways that they wouldn’t be predicted. The event can cause changes in the stock market that wouldn’t appear if the event didn’t happen.
Gorilla
What Does Gorilla Mean?
A company that dominates an industry without having a complete monopoly.
A company that dominates an industry without having a complete monopoly.
Investopedia explains GorillaThis term is a reference to the old jokes about the 800-pound gorillas, who "does whatever it wants." For example, you'll hear people say that Microsoft is an 800-pound gorilla.
During our game we bought the Stock Lululemon. Lululemon is the gorilla of the fitness clothing suppliers. Lululemon happened to be one of our most successful stocks in our game. Well on the American side at least.
Lululemon seems to have quite a strong demand and always seems to come out on top for the fitness clothing sales. The company doesn’t have a complete monopoly. But definably dominates the industry.
Market Jitters
What Does Market Jitters Mean?
Feelings of nervousness created by uncertainty or fear about the current investment environment.
Feelings of nervousness created by uncertainty or fear about the current investment environment.
Investopedia explains Market Jitters
Market jitters can be caused by (among other things) poor corporate earnings, high rates of unemployment, or uncertainty with the Federal Reserve interest rate decisions.
Market jitters can be caused by (among other things) poor corporate earnings, high rates of unemployment, or uncertainty with the Federal Reserve interest rate decisions.
This semester we found we had the market jitters. The investment environment was some what uncertain and didn’t tend to have a upward trend as we experienced in the previous stock game. We think it had to do with the Bank of Canada deciding about rate changes as well as continued unemployment from the recovering economy.
No comments:
Post a Comment