For 15 years, Michael Fratacci Sr. led operations at Ramco Electrical Contracting Corp., an energy company he founded in 2001. Alongside more than 30 years of experience completing electrical installations in New York City, Michael Fratacci Sr. possesses a professional interest in current events in the stock market.
As of early 2020, many stock market watchers are speculating about the impact of Covid-19, a previously unknown coronavirus, on the world’s stock exchanges. The coronavirus is the latest example of an unpredictable but highly impactful global occurrence, also known as a black swan event. These events are particularly disastrous for the stock market because the consequences of the occurrence are difficult to anticipate.
The fact that the virus first emerged in China, a global manufacturing hub, rather than a sparsely populated region, makes the situation much more precarious for the economy. Further, the potential for exponential spreading has led to decisions that may impact global markets, such as travel bans and wide-scale quarantines.
Most black swan events are deemed inevitable in hindsight. Because similar epidemics have emerged in recent years, experts in the future may argue that the possibility of a situation like Covid-19 should have been expected.
Michael Fratacci 