Herding Swans and Derivatives to manage uncertainty
How can we help an investor make better financial decisions? It is to explore the factors and forces that shape uncertainties and derive a set of actions to manage them to net benefit.
The paradigm of the Black Swan provides useful insight to the nature of these uncertainties and risks to any investment. The use of derivatives might be a means to navigate the Swan-infested waters in the current environment of increased volatility and ballooning asset values.
