{"id":2163,"date":"2010-08-12T12:47:39","date_gmt":"2010-08-12T19:47:39","guid":{"rendered":"tag:google.com,2005:reader\/item\/c56099602f8a6e61"},"modified":"2010-08-14T21:10:30","modified_gmt":"2010-08-15T04:10:30","slug":"scala-volpe-capital-blog","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2010\/08\/scala-volpe-capital-blog\/","title":{"rendered":"Scala Volpe Capital &#8211; Blog"},"content":{"rendered":"<blockquote>\n<p>Shared by  JohnH<\/p>\n<p> We met Christopher when he wrote about his Black Swan Protection Protocol  <a href=\"http:\/\/austrianschool.blogspot.com\/2010\/02\/black-swan-protection-protocol-approach.html\">http:\/\/austrianschool.blogspot.com\/2010\/02\/black-swan-protection-protocol-approach.html<\/a> He&#8217;s recently launched a new site and has more market-centric NNT related content (see Blog) I&#8217;m sure you&#8217;ll appreciate. Check it out <a href=\"http:\/\/www.scalavolpe.com\/index.html\">http:\/\/www.scalavolpe.com\/index.html<\/a><\/p>\n<\/blockquote>\n<p>Let\u2019s come back to the present.\u00a0 On May 6, 2010, the Dow Jones fell nearly 10% <strong><em>in a matter of minutes<\/em><\/strong>.\u00a0 Not weeks.\u00a0 Not days.\u00a0 Not one day.\u00a0 But minutes.\u00a0 Now, it\u2019s true that it recovered significantly from that low point before the trading day ended.\u00a0 But we mustn\u2019t allow that fact to cloud the basic truism that the market could plunge by so much, with a rapidity never seen before.\u00a0 Again, this leads us to the fractal concept: if the market could plunge 10% in one day, why can\u2019t it plunge 10% in one minute?\u00a0 Could it plunge 22% in one minute?\u00a0 Or perhaps more?\u00a0 On May 5 had you suggested such a thing, you\u2019d be looked at as crazy; on May 7, realistic.<\/p>\n<p>The bottom line here is, as investors we should consider the power of applying fractals to our hedging strategies, by stepping outside convention and imagining what the possibilities might be based on the evidence at hand.\u00a0 This will undoubtedly remove many of the limits we often self-impose on what\u2019s \u201cpossible\u201d in the markets, and allow more creative hedging approaches to flourish.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shared by  JohnH <\/p>\n<p>We met Christopher when he wrote about his Black Swan Protection Protocol  http:\/\/austrianschool.blogspot.com\/2010\/02\/black-swan-protection-protocol-approach.html He&#8217;s recently launched a new site and has more market-centric NNT rela&#8230;<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-2163","post","type-post","status-publish","format-standard","hentry","category-feeds"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/2163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/comments?post=2163"}],"version-history":[{"count":2,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/2163\/revisions"}],"predecessor-version":[{"id":2169,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/2163\/revisions\/2169"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=2163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=2163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=2163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}