Black swan theory

The Black Swan Theory is an idea that says that certain events can come as a surprise, have a major effect, and be often rationalized after they have happened. It comes from a story about a person who said that all swans were white until they found a black swan, which was a surprise. The idea can be applied to many things, like stocks, the economy, and even sports. In the stock market, it can mean that shares can be unpredictable and can crash quickly and unexpectedly. In the economy, it can mean that the economy can go through drastic changes and even recessions that are hard to predict. In sports, it can mean that teams with lower expectations can beat the best teams, which is a big surprise. Basically, the Black Swan Theory is about the idea that surprises can happen that can have powerful effects and that these surprises can't always be predicted ahead of time.