Book ↠ Applied Financial Macroeconomics and Investment Strategy A Practitioner's Guide to Tactical Asset Allocation ↠ Robert t mcgee

Doc Applied Financial Macroeconomics and Investment Strategy

Book ↠ Applied Financial Macroeconomics and Investment Strategy A Practitioner's Guide to Tactical Asset Allocation ↠ Robert t mcgee ↠ ❰Reading❯ ➷ Applied Financial Macroeconomics and Investment Strategy: A PractLyzes the investment implications using real world examples linking economic dynamics to investment result The book is an excellent overview of the drivers of many different asset classes over the past 30 60 years It is a nice overview but as one would expect it is hard to impossible to get into tremendous depth for every asset class in just 250 pages I specialize in euities and I found a lot of that section uite remedial However if you are not an euities professional you may find it provides a reasonable amount of data While some sections were lacking on a lot of actionable insight I found the whole book uite worth my time as I think that it gives some good long term perspective behind the performance of various asset classes since 1970 while also giving some solid insight into where we stand in the current cycle

Book ✓ A Practitioner's Guide to Tactical Asset Allocation Ê Robert T McGee

The absolute and relative performance of various asset classes is systematically related to macroeconomic The headline to this review may be deemed irrelevant since the author states right off the bat that this is a book oriented to asset management professionals or soon to be ones However I thought it could be helpful to any individual investor who ended up hereBy “not critical” I don’t mean useless On the contrary I think it is very educational The problem is that I don’t think applied financial macroeconomics consists of an investing approach in itself It is definitely a very strong complement But nothing than that Being time and resource constrained individual investors need to be very efficient in the way they plow through information and make decisions They don’t care if the investment philosophy sounds appealing they just need it to work and be easy to implement And it’s for that reason that this is not a critical book for themThe author’s thesis is based on the idea that the business cycle is a critical factor explaining major fluctuations in the different asset classes euity bonds and commodities This is true in the sense that every time there has been a recession or depression there has also been a major correction or a straight up crash in the stock market The problem is that those are not the only times when the stock market has suffered major corrections The popular saying “the stock market has predicted 9 of the last 5 recessions” implies that there are almost twice as many stock market cycles than business cycles please don't take this literally And remember you’re trading the stock market not the real economy I don’t think any investor found any comfort in the fact that the real economy was not in a recession in 1987 after Black Monday Even the author himself shows how since 1945 the freuency duration and magnitude of the business cycle has decreased considerably In particular there have only been 5 recessions in the last 40 years That’s an average of 1 recession every 8 years In fact the average has been like 1 recession every 12 years since the beginning of the secular bull market that started in the early 80’s That might be just too infreuent to be used as a foundation for an investment strategyAnother problem with the business cycle approach is that it uses old data Although there are some leading indicators around in general all these macroeconomic data is about the past And as we know the stock market is a forward looking mechanism So if you have to wait for the macro data to become available you will often than not be late to the partyIn general I think there are much easier and efficient ways to play the market cycles That starts with focusing on the actual tradeable cycles those of the asset classes instead of on the ones underlying the real economyNow there are two major positive aspects about this book First it is very original There are not too many books on this topic In fact I only know of one Expected Returns by Ilmanen and that actually has a academic bias Second it approaches the analysis of macroeconomic events using the right methodology That is it avoids the rigidity of mathematical models from academia to favor an approach based on history concepts and common sense That is not a minor point In fact it is huge one The reason why this is a very educational read beyond its practical implementation

Robert T McGee Ê A Practitioner's Guide to Tactical Asset Allocation Pdf

Applied Financial Macroeconomics and Investment Strategy A Practitioner's Guide to Tactical Asset AllocationTrends In this new book Robert McGee provides a thorough guide to each stage of the business cycle and ana This is simply the best book I have found when it comes to connecting the macroeconomic cycle with investing Will be too advanced for novice investors but if you manage money then you need this book on your shelf Simply awesome