When Markets Collide: Investment Strategies for the Age of Global Economic Change

I purchased this book at an airport while waiting for a flight. It was prominently displayed in the business section of the bookstore (perhaps that should have been a warning). The book includes endorsements from such august figures as Alan Greenspan, Seth Klarman and Michael Spence, yet I doubt if any of them actually read the book in its entirety. Moreover, Mr. Greenspan works as a consultant for PIMCO (also the employer of the author).

The book makes some decent macro-orientied observations but none of them are really new or unique. Moreover, the writing style is ponderous and prolix. The typical, individual investor can skip the first five chapters and go directly to chapter six, where you will find a recommended portfolio. However, there is nothing especially enlightening about the portfolio he recommends. (He also fails to mention the tax issues surrounding TIPS).

I was surprised at how he rather cavalierly addressed index funds vs. actively managed funds when discussing equity allocations. I understand that he didn't want to get into the active vs. passive debate, but I was expecting more from someone with his background and expertise. For example, he suggests that retail investors use Lipper and Morningstar (bottom of page 203) to gain "insights" into this process. However, he doesn't say how using these services will lead one to pick a superior actively managed fund.

In addition, although the book was published in 2008, it would have greatly benefited the reader if it had included more discussion and insight into the events and implications surrounding Bear Stearns, Fannie and Freddie. At times (and I realize that this is not directly the author's fault) the book sounded outdated. While hindsight is 20-20, both the author and the reader might have been better served if the book was released later to allow Mr. El-Erian to include more of his candor and insight on these important developments.

It's hard to imagine someone having more cred's than Mohamed El-Erian or having a better understanding of trends in the global economy, and as articulate. For those reasons alone, it's hard for investors, large or small, to justify NOT spending a little with with Mr. El-Erain. This book is a global financial compass, not a recommendation on specific companies to invest in or run from. When Markets Collide gives the reader a frank overview of the forces behind macro global financial trends (i.e, reality check), where those financial trends are almost certainly taking us in the next 5 to 10 years, and what those trends mean for investors that are in the market for the long-term.

Great perspective on the big picture of current global markets.

Insights into possible future direction of global economies.

Easy to read for someone without an economics background.

I think this is an excellent book that makes you think. Mr. El-Erian certainly has a very deep understanding of the current economic and financial environment and is able to convey much of this understanding to his readers. I enjoyed the book very much.

This book was awful. Part of the problem is that the author couldn't decide who his audience was and, as such, probably bored the pants off finance people and left regular folk scratching their heads at his absurdly opaque writing "style".

A couple quick points if you are considering buying this book:

1. It you read the newspaper most days, are reasonably intelligent and realize there is a big world with lotsa money beyond America's shores, this book will give you no new information on "when markets collide".

2. If you have some (I mean A MINIMAL AMOUNT) of investment knowledge, you will be painfully disappointed by the lame chapter on how to profit from future "collisions". Really, the author just lays out a pretty mundane asset allocation plan (which is available for free on any number of websites) and then fills a couple dozen pages with worthless blather. Seriously, that's it.

3. The writing really sucks. Others have commented on this so, rather than gives examples, I'll just reinforce what others have noted: the writing sucks. Whatever happened to editors?

4. If you really want some ideas about investing internationally, try The World is Your Oyster by Jeff Opdyke (2008). Heaven forbid, he writes in plain ole' English and gives a lot of worthwhile advice. If you really want to understand where the world is headed, read Billions of Entrepreneurs, How China and India are Reshaping Their Futures and Yours, by Tarun Khanna (2008).

5. If you really want some ideas about investing in general Peter Lynch's classics are still every bit as instructive (and humorous...and nicely written) and the biography of Warren Buffett, "Buffett", is incredibly instructive. Jeremy Siegel's "Stocks for the Long Run" is also pretty handy, although el-Erian makes some snide comments about it...but never quite gets around to justifying them...hmmm...some petty Harvard - Wharton rivalry?

6. el-Erian's shout-outs to colleagues here and there get more tedious as the book goes on, particularly as he never seems to articulate how the work of these experts is relevant to creating an investment portfolio. Gee, thanks.

7. Let me say it one more time: When Markets Collide is a worthless read.