Gentle Reminder: Once in a while, there will be a BlackSwan

Believe me, it is tough to deal with the social consequences of the appearance of continuous failure. We are social animals; hell is other people.Nassim Nicholas Taleb, The Black Swan: The Impact of the Highly Improbable

Argentine Merval Index – Daily Chart
Crash From All-time high levels.

This time it is Argentina Merval Index. On 12th Aug 2019, Merval Index collapsed more than 37.93% post-Argentine election surprise. The argentine stock market moved lower by 11% soon after trading opened for the day

Argentine Merval Index : 34% Intraday Crash post-election surprise
Merval Index : 1min charts

Argentina’s peso shed nearly 23% and shoot up to a high of 62 against the dollar with an intraday loss of around 30% which is later followed by a pullback towards 55.79 levels.

Reuters reported that ” Argentina’s central bank used $50 million in its own reserves, for the first time since September last year, to intervene in the foreign exchange market and defend the peso in the face of a massive sell-off “

However, for Merval Index 10% crash is not a new thing. This is the third attempt to close more than 10% down since 2011. However, the election results turn out to be a black swan event crashing the index more than 34 plus percent.

It is a Gentle Reminder from merval index that once in a while, there will be a BlackSwan. Get yourself prepared in the future.

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