I was recently given a copy of Mohammed El-Erian’s new book When Markets Collide: Investment Strategies for the Age of Global Economic Change
The arrival of this book couldn’t have been more timely with the volatility of the world’s financial markets what they are, and the proposed “bail-out” of the mortgage lending industry here in the U.S.
Having managed Harvard University’s massive $35 billion endowment and later becoming the CEO of PIMCO, El-Erian is without question one of the leading experts in the intricacies of international markets.
El-Erian warns that the United States has been operating well beyond its means for many years and that ever increasing financial claims by Middle Eastern and Asian Countries from the purchase of US bonds and equities will soon enable these countries to manipulate or national financial market in undesirable ways.
Though I found his strategies on asset allocation to be very intriguing (he recommends only 15% of your portfolio in US Equities for instance), I will be the first to admit that the book is not an easy read for non-academic types like myself. At times it seems like El-Erian is trying too hard to impress us with his complex sentence structures and ostentatious use of words.
His ideas and suggestions for capitalizing on the new world economy would be better served had they been written in a less complicated style(layman’s terms) more suitable for his targeted audience, which I can only assume is the laity.
If you are a true student of investing, and want a thorough understanding of how ever increasing trade imbalances, rising commodity prices, and staggering national debts will impact your bottom line, When Market’s Collide will offer you valuable insight from the mind of an undisputed expert in the field.
On the other hand, if you are a casual investor dealing mainly with a portfolio of less than $200,000 in a combination of 401ks and IRAs, I would pass on this particular book and keep your focus on a diversified portfolio of mutual and bond funds as I will be doing, even after having read this book.
