When Markets Collide by Mohamed El-Erian

Mohamed El-Erian is one of the most famous investors of our days and a author of many economic and financial oriented books and articles. So there will be no surprise for you that his latest book, When Markets Collide, had a great success.

The author deals with the problems of present and future markets, making an accent on the investment and analyses the main reasons for the markets to collide. With all these events happening nowadays it's difficult to build up a realistic picture of modern and future markets. However, Dr. El-Erian does that in his book, using his experience and observations on the markets.

A huge part of the book explains the current situation with markets. If I was discribing in one sentence the main idea of what I have read, I would say something like that: "The dynamic changes in modern markets cannot be ignored and should be used for your benefit". The author is talking about the changes in US economic positions - in a few years this country has changed its status from a creditor to a debtor. On the other hand, emerging markets, the countries, which used to be low developed, are now growing and have a great potencial. Markets collide right here - on the edge of past and current situation. Macroeconomic situation will be restucturing more and more. The 'transformation' topic continues these ideas.

Taking as a base all this market knowledge, Dr. El-Erian gives lots of advice how to invest successfully. The author talk about the main mistakes of investors - the so called 'mainstreaming', where people invest in those things, which are invested by the majority. Instead of using their own mind and intuation, investors fail or become 'data depended'. They think that they avoid the risk investing in something that other people also invest, but really the should consider the 'noise' to understand how market situation looks like now. There are also general advice like how to protect your portfolio, what the investors should do first of all etc.

The launguage of the book contains finance and economomic terminology a lot, which underlines the target auditory of the book - finansists, economists and investors. The book came out only 5 months ago, so there is no old data information. And some things were even predicted by the author, and this leaves no doubt that Mohamed El-Erian knows what he writes.