Black Gold and the Black Swan

Posted by Tim Hope on 6/12/08 10:08 am

In his extremely interesting book “Black Swan: The Impact of the Highly Improbable”, Nassim Taleb writes about the consequences in life, and in the financial markets, of relying upon normal return (i.e.  bell curves).  In other words, if distributions are not “normal” there exists a potentially larger than expected chance of extreme events.  Scientist Richard Pike believes that the present methodology of estimating oil reserves ignores extremes of the distribution curves.  As a result, the actual amount of estimated oil may be double what is presently thought to exist.  Read the article by clicking here.

To receive email updates from Navellier All Cap Blog, click here.

• 
• Email
• Print
• Comments (0)

No comments have been posted for this entry.

Post a Comment

You must register and log in in order to post comments.