Being successful in the modern world of finance requires a more in-depth understanding of our global economies on a macro level. What does a shifting demographic cycle mean? How does the explosive growth of emerging markets matter? Why does the world's population affect my portfolio? Does the global monetary system impact my results this year? How does government intervention in markets impact my strategy? In Pragmatic Capitalism, Cullen Roche explores how our global economy works and why it is more important now than ever for investors to understand macroeconomics. Cullen Roche combines his expertise in global macro portfolio management, quantitative risk management, behavioral finance, and monetary theory to explain to readers how macroeconomics works, and provides insights and suggestions for getting the most out of their investment strategies. This book will uncover market myths and explain the rise of macroeconomics and why it impacts the readers' portfolio construction. Pragmatic Capitalism is a must for any sophisticated investor who wants to make the most of their portfolio.
In friendly, clear prose, financial consultant Roche introduces the macroeconomic principles that readers need to know as they venture into the world of investing. Roche explains basic concepts: the difference between saving and investing, how to understand a corporate balance sheet, and the function of the Federal Reserve. He is fond of claiming to dispel widely held myths for example, the stock market does not produce the level of returns most people think. (A few of the myths he debunks seem curious choices; post-Great Recession, does anyone believe that "economists have all the economic answers," or that owning a house is a great investment?) Though the book is more explanatory than how-to, Roche cautions against paying high fees, and gives tips for picking a money manager. In one of the most valuable chapters, an overview of behavioral finance, Roche urges readers to look beyond specific financial assets and instead focus on an investing process. A very good suggested reading list rounds out the book. This fine resource, which focuses on the larger picture more than most personal finance magazines and blogs do, would be a good addition to individual investors' libraries and would make a savvy gift for recent graduates.