Our tools for forecasting and risk measurement cannot begin to capture black swans, says Nassim Nicholas Taleb.
In fact, he says our faith in these particular tools makes it more likely we’ll continue to take dangerous, uninformed risks when investing and making predictions.
Read: Risk management lessons
But don’t despair, he said in a recent Wall Street Journal article.
Though his view seems pessimistic, he says the goal is not to foresee black swans. Instead, we have to focus on building better financial institutions that won’t fall apart during downturns.
In addition, he listed 5 ways investors can benefit from volatility.