Stock market guru Laszlo Birinyi says the oil price drop is what the markets have been waiting for—a “black swan” event.
“What we’ve seen is something people have been talking about for two, three, five years and no one is talking about it now,” said Birinyi, founder of Birinyi Associates. “It’s just a black swan.
A totally unpredictable event. It comes clearly out of the blue. Four standard deviations out of anything else. In a case like that, there are no perimeters. How can you say it will go to $65 or anything else? My attitude is it’s the black swan, the Hurricane Sandy of the market, where you do not know where it’s going, but if you want to guess go ahead. But appreciate that you’re guessing.”