World Famous Comics: When Markets Collide: Investment Strategies for the Age of Global Economic Change
When Markets Collide: Investment Strategies for the Age of Global Economic Change
By: Mohamed El-Erian Publisher: McGraw-Hill Average Rating: Binding: Hardcover Number of Items: 1 Number of Pages: 304 Publication Date: May 23, 2008 Studio: McGraw-Hill
SELECTED AS A 2008 BEST BUSINESS BOOK OF THE YEAR BY THE ECONOMIST
"ONE OF THE SMARTEST INVESTORS ON THE PLANET."--MONEY MAGAZINE
“This book is an essential read for those who wish to understand the modern world of investing.” —Alan Greenspan
Winner of the 2008 Financial Times and Goldman Sachs Business Book of the Year Award
When Markets Collide is a timely alert to the fundamental changes taking place in today's global economic and financial systems--and a call to action for investors who may fall victim to misinterpreting important signals. While some have tended to view asset class mispricings as mere “noise,” this compelling book shows why they are important signals of opportunities and risks that will shape the market for years to come. One of today's most respected names in finance, Mohamed El-Erian puts recent events in their proper context, giving you the tools that can help you interpret the markets, benefit from global economic change, and navigate the risks.
The world economy is in the midst of a series of hand-offs. Global growth is now being heavily influenced by nations that previously had little or no systemic influence. Former debtor nations are building unforeseen wealth and, thus, enjoying unprecedented influence and facing unusual challenges. And new derivative products have changed the behavior of many market segments and players. Yet, despite all these changes, the system's infrastructure is yet to be upgraded to reflect the realities of today's and tomorrow's world. El-Erian investigates the underlying drivers of global change to shed light on how you should:
Think about the new opportunities and risks
Construct an appropriately diversified and internationalized portfolio
Protect your portfolio against new sources of systemic risk
Best think about the impact of central banks and financial policies around the world
Offering up predictions of future developments, El-Erian directs his focus to help you capitalize on the new financial landscape, while limiting exposure to new risk configurations.
When Markets Collide is a unique collection of books for investors and policy makers around the world. In addition to providing a thorough analysis and clear perspective of recent events, it lays down a detailed map for navigating your way through an otherwise perplexing new economic landscape.
When Markets Collide, Chapter 1: Aberrations, Conundrums, and Puzzle ^ What a rip off! More than half the price for the whole book for one chapter and everything about the description is for the whole book. The "Chaper 1" in the title can be easily overlooked. Instead of a bargain on a once popular book what is offered is an overpriced, brief excerpt.
New Realities - New Strategies ^ When Markets Collide, by Mohamed El-Erian, offers significant insight into the changing dynamics of the global economies and the responses of policy makers and leaders of countries to the new financial landscape.
Information shared in this book is comparable to the visions of the future addressed by Thomas Friedman in "The World is Flat" and by Nassim Nicholas Taleb in his book, "The Black Swan."
Disruptive innovation, structural transformation and new technological capabilities are mentioned frequently in this book. Discussing these factors helps to raise investor awareness on the speed of change and the lack of capacity and capability of current structures and business practices to respond.
Disruptions not previously experienced prior to the recent financial meltdown * Decline in trust among counterparties * Sudden stops in market liquidity * Policy makers simultaneously thrown into crisis management mode
Dynamic Changes * Emerging countries transition from debtor to creditor nation status * US and European countries burdened by extraordinary debt * China as the largest underwriter of US debt
Challenges * Emergence of global financial disruptions occurring simultaneously * Ability of emerging economies to successfully manage the new found wealth and avoid the pitfalls of excessive spending and free credit * Potential inability of policy makers (FED, IMF, etc.) to influence monetary and fiscal policies
Aside from alerting his readers to the changes noted above, Mr. El-Erian's goal is to help others "recognize and understand turning points in the markets" to "have a way to identify and think about signals within the noise" of change.
Good return on investment now for success in the future.
Raises The Right Questions ^ This is good background reading for reconsidering what your portfolio should look like and how you should manage it. Many of the points are becoming the "new consensus". The answers may not be perfect, but the highly experienced author raises many of the right questions
Great work ^ very insightful, this man has great vision and wisdom that he shares with thr rest of us.
A few of articles expanded to fill a book ^ This book reads like three articles and a lot of filler: an article from an economics journal, another from a popular investment magazine and finally a foreign policy review article. Unfortunately, these three articles only fill about 1/10th the space, so a lot of repetition and filler is added to bring it to the full length. It does have a number of good points, but, in spite of the excessive verbiage, they seem to be poorly elaborated. The author seems to repeat, rather than elucidate.
It is also difficult to determine the audience the author is addressing - especially since he commonly refers to 'investors'. At times 'investors' seems to reference retail investors who buy index funds. At other times 'investors' are investment bankers managing large funds. Sometimes, I found myself midway through a section before realizing it was a different "investor" he was talking to. And just to confuse matters even more, we spends a good portion of the book addressing desired changes to national and international policy.
In spite of the very poor writing, there are some interesting ideas, especially as they relate to the changing economic landscape with the 'emergence' of emerging economies. Perhaps the author will choose to reduce the book to a few well-written articles.
Anything Goes Trivia
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Trevor
