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

by Paul McCulley and Jonathan Fuerbringer

Book Overview

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... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0470043598
• ISBN13: 9780470043592
• Release Date: June 2007
• Publisher: Wiley
• Length: 244 Pages
• Weight: 1.00 lbs.
• Dimensions: 0.9" x 6.5" x 9.0"

Customer Reviews

Give Your Portfolio a Passport for Profitable Returns

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.

Your Financial Edge: How to Take the Curves in Shifting...

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!!