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

When Markets Collide: Investment Strategies for the Age of Global Economic Change
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Book Summary Information

Author: Mohamed El-Erian
Edition: Hardcover
Audio: English (Original Language); English (Unknown); English (Published)
Published: 2008-05-23
ISBN: 0071592814
Number of pages: 304
Publisher: McGraw-Hill

Book Reviews of When Markets Collide: Investment Strategies for the Age of Global Economic Change

Book Review: disappointed
Summary: 2 Stars

When you read a book like this, you are hoping to learn about the back story about an issue, the inside scoop. The only useful insights I received from this book are that the influence of the IMF and the Fed are dipping due to globlization. Other than that, the author spends a lot of time trying to convince us that the balance of power in the financal system is shifting from the US and Europe to the "expanding economy."

Many years ago when I was a McKinsey consultant, Paul Volcker gave a talk to the staff about how the accumulation of dollars in the middle eastern countries would lead them to unprecedented power over our economy, and possibly our ruin. They would be able to manipulate our financial system. They have more of our money today than ever and it is still not true today. The author seems to be stuck on this page as well.

What he could have covered was how the IRAQ war was designed, in part, to revive our financial system, much as the second world war was partially designed to get us out of the depression. Or he could have explained that globalization hasn't yet worked for the US since nobody "over there" is using the dollars we sent them to buy our products. They buy our financial products that are soon without value due to shenanigans such as the sub prime mortgage mess or the dot com collapse, etc.

Well, I'm not going to rewrite his book for him. But if I did, I would eliminate the stilted academic language that conveys little meaning.

Summary of When Markets Collide: Investment Strategies for the Age of Global Economic Change

"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

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.

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