Be ready for black swans

Equity investing is always a struggle between the underlying natural growth of economies and businesses, and the multitude of uncertainties and risks that exist. Variability - the alteration between periods of sharp growth and steep falls - is the normal state of equity. When we invest in equity, we sign up for volatility. In fact, we should hope for it because if equity is to give outsized returns, it's only because there's a premium for the risks that equity investors take. Often we investors fall into the error of believing that risks can come only from the financial, business or economic aspects of the world. The COVID-19 crisis is a reminder that this is not true. Black swans are everywhere. In fact, this is a good tim