Retained Learnings from the books we read.
Reason for Recommendation:
This book describes the global history of economic fluctuations and business cycle theory for more than 300 years. It explains the core of the problem and shows how cycles can be forecast and how they are managed by central banks. This book can help you better understand economic crises and fluctuations and help develop a better understanding of market trends and investments.
About the Author:
Lars Tvede spent 11 years in portfolio management and investment banking before moving to the high-tech and telecommunications industries where he was a co-founder of several technology companies which have won various international awards including the Red Herring Global 100 award. He is also founder of Beluga, a successful financial trading company, advisor to a Swiss hedge fund and strategic partner in the Nordic-American venture capital fund Nordic Eye.
Inspired by a phenomenon witnessed during his business career, Lars Tvede realized that many people lose their business and money not because they aren’t clever businessmen, but because they get blindsided by turns in the business cycles, sometimes resulting in bankruptcy.
Business Cycles merges four stories into one book. Firstly, the book provides a comprehensive and entertaining history of economists, economic analysis and financial crises over the last 300 years.
Secondly, it describes how economists work- how they use math, statistics, history, and even psychology to understand our economies.
Thirdly, it explains and quantifies the main drivers of business cycles (interest payments, asset prices, building construction, capital spending, and inventories) covering how each of these factors work and what drives their inherent instability and the magnitude of their impact.
Finally, it explains how gold, diamonds, art and collectibles and different categories of stocks, bonds, hedge funds, private equity funds, exchange rates and property behave over different categories of business cycles.