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Download Your Financial Edge: How to Take the Curves in Shifting Financial Markets and Keep Your Portfolio on Track epub

by Jonathan Fuerbringer,Paul McCulley

Praise for Your Financial Edge "Paul McCulley is the man to heed. His knowledge of financial markets runs deep, and his experience has been the best. Beyond all his financial and economic wisdom, he is a human being with inborn instincts of kindness and thoughtfulness-attributes that bring to the reader something richer than just hard facts and sage advice. Jonathan Fuerbringer is the perfect partner for this project, a master of lucidity and a longtime observer of the best and the worst habits of investors." -Peter Bernstein, bestselling author of Against the Gods "Paul McCulley's insightful observations on the economy and financial markets are key inputs to our investment thinking. This book provides analytical tools and actionable advice that can greatly improve your ability to navigate today's complex financial environment. Learn from a master (and maybe even future Federal Reserve Board member) and become a better investor." -Bill Miller, Chairman and Chief Investment Officer, Legg Mason Capital Management "Paul McCulley is just the man to bring 'that ole-time religion' of economics into the new age of investing and help the reader to make coherent sense of just what is going on here. I should know...I listen to his counsel every day here at PIMCO, and for anyone who lacks a key to our door, this is the next best thing! Profit by the prophet-and yes-enjoy." -William H. Gross, Managing Director, PIMCO "In this highly readable book, McCulley and Fuerbringer provide valuable insights, including how the world of policy making impacts investment decisions. Their entertaining and thoughtful analysis is accompanied by a series of penetrating real-life examples that demonstrate the choices facing investors as they seek to maximize returns and minimize risk. With its wisdom and unique perspective, this book will be of interest to both institutional investors and policymakers." -Dr. Mohamed A. El-Erian, President and CEO, Harvard Management Company, member of the faculty, Harvard Business School, and Deputy Treasurer, Harvard University "There's a reason Paul McCulley is a favorite among financial pros and journalists all over the world. He anticipates investment trends before they happen and helps both professional and amateur investors stay ahead of the curve. This is a must-read book for anyone who wants to build and protect their portfolio in the risky decades ahead." -Consuelo Mack, Anchor and Managing Editor, Consuelo Mack WealthTrack
Download Your Financial Edge: How to Take the Curves in Shifting Financial Markets and Keep Your Portfolio on Track epub
ISBN: 0470043598
ISBN13: 978-0470043592
Category: Business
Subcategory: Economics
Author: Jonathan Fuerbringer,Paul McCulley
Language: English
Publisher: Wiley; 1 edition (June 22, 2007)
Pages: 244 pages
ePUB size: 1584 kb
FB2 size: 1401 kb
Rating: 4.5
Votes: 827
Other Formats: lrf azw doc txt

Investors will need to assume greater risk to achieve their goals in a low inflation-low asset return world. Half of the world's capitalization is outside our borders. The international markets are enjoying strong economic growth and their markets are becoming safer. So, adding exposure to emerging and developed international markets are reasonable risk strategies according to the authors. Export economies (e.g. China) eventually become consumer economies (importing finished goods and services). In the meantime their global demand for natural resources and commodities underscore these asset classes as another way to diversify and add risk opportunistically to a portfolio. Another major trend is the weakening dollar which leverages the returns in non-U.S. markets. U.S. investors face a stark choice: take on this added risk or expect a lower standard of living. These and related ideas are nicely developed early on and reintroduced in the final chapter, "Driving Your Portfolio".

Along the way the authors offer some interesting ideas on the markets and Federal Reserve policy actions. Just one...

The Feds have shown their resolve when it comes to fighting inflation beginning with Paul A. Volcker, Alan Greenspan, and now Ben Bernanke. But fighting inflation is "the last war". In fact, inflation fears are really just "interest rate scares in drag" (!) Disinflation, falling asset values, that could spiral out of control in the next recession and inflict damage on our global trading partners' economies, should also be their focus. The Feds should specify an explicit inflation target range between 1.5% and 3% - a full percentage point higher than the current implied 2% inflation top - to make it clear that they will risk some inflation to prevent an economy from stalling.
This book is great. Not only is Paul McCulley one of the great financial minds of our generation, he also has the uncanny ability to communicate that which is in his mind and heart. This book will change one's financial life and provide the hope and clarity needed to better understand todays challenging financial markets. Finally, this book is understandable and entertaining. As soon as the reader finishes it, they will want to pick it up again for a second read. Happy reading!!