The Life in the Financial Markets How They Really Work and Why They Matter to You

Review :

Children sometimes understand things better than adults. The book "Life In The Financial Markets" by Daniel Lacalle is somewhat of an autobiography with investment tips. It may go a little slow for people familiar with investing or economics and it may not explain things in great enough detail for those who are unfamiliar however it is an insider account of financial markets with perspective from both the buying and selling side of the market. Mr. Lacalle shares occasional quotes from his three children and they are the reason he wrote the book - to demystify and de-myth-ify common misconceptions about the global financial market and hedge fund investing.

From an international perspective, Mr. Lacalle reviews investment strategies from the business selling shares to the investors who buy and sell shares whether banks, governments, or hedge funds. Government bonds and quantitative easing are also reviewed and that is where a child's may be the wiser voice -paraphrased - 'just printing more money is kind of like cheating." Print four more dollars for every dollar already in circulation and anyone with the original dollar in savings now owns the equivalent of twenty cents - roughly, I am not a banker, economist or hedge fund investor.

When governments are printing more money and making banks very low interest loans of it then the banks are suddenly looking for high quality borrowers to invest it with but that may be difficult with four trillion dollars to suddenly invest. Banks or hedge fund investors may just be doing their jobs with a goal of reducing risk as much as possible. Bailing out banks who have been found to have followed unorthodox or even illegal practices is diluting trust in banks and increasing risk that the unorthodox loaning will be repeated in the future. Printing money and bailing out banks that don't follow low risk business practices are problems at the government level. Hedge fund investors may be called speculators however their role is to decrease investment risk by spreading a balance of buys and sells across a range of businesses. They make most of their money only when their own advice works.

Read the book for more details on investing tips, phrases that may serve best as warnings for stocks to avoid, and books or educational degrees for more information. Movies that represent the industry realistically are also included. The book is humorous occasionally and near the end a summary is included of the investing strategies Mr. Lacalle thought most important.

People other than standard investors, bankers, or economists may also be interested in the book. Cryptocurrency in the form of Bitcoin is discussed in an earlier section regarding the question of whether it is money or more of a security/stock trade. Politicians may benefit from reading the book to help learn how to avoid printing a nation into inflation and retired politicians interested in a career in business may benefit from learning how to avoid leading a business into becoming a short instead of a long. Anyone interested in an insider's account of the years leading up to the European austerity and the U.S. 2008 housing bubble may enjoy reading the book. Scriptwriters may also enjoy the book, - "The Wolf of Wall Street" is not on the recommended movie list, I missed that one, however I'll be looking forward to "The Dad on Hedge Fund Row."


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