“Black Swan” Investing Strategy
Based on the transformation of and disruption to the industrial economy being caused by first-mover and digital disruptor companies, and the volatility being caused by negative interest rates and global geopolitical risks, Mr. Markowski is advocating that all investors adopt a Black Swan investment strategy. The underlying basis of the strategy which is from a book by Nassim Nicholas Taleb that spent 37 weeks on the NY Times best seller list is to invest a minority of one’s assets into a portfolio of companies transforming the economy and a majority into sovereign bonds. The Black Swan is both extremely simple and safe. Invest under the assumption that it is inevitable that there will be “black swan” or one off events that will result in all stocks and mutual funds crashing which is what happened in 2008. Thus, it is ludicrous for an investor to believe that diversification protects them from risk. The video below entitled “Markowski Visionary Analyst 5 of 5” covers the Black Swan strategy. It also explains why the sovereign debt component of the strategy is the only solution that protects an investor’s liquid assets.