Juggling with Knives: Smart Investing in the Coming Age of Volatility

The current age is one of financial volatility%E2%80%94and the rate at which markets are bottoming out and then rebounding is well above the norm, says market analyst Jubak. In fact, there have been four major volatility crises in 10 years: the Asian currency crisis of 1997, the Russian crisis of 1998, the dotcom bust of 2000, and the global financial crisis of 2007%E2%80%932008. Jubak feels that our understanding of how this phenomenon works is still woefully inadequate. To determine how investors can survive volatility and even make it profitable, the book's first half covers the trends that brought about the current situation and all the reasons why we can expect the same for at least the next decade, touching upon the psychology of volatility and how people cope with it (in a word, poorly). The second half covers investing opportunities created by volatility and ways to improve traditional investment strategies, with the overall goal of avoiding panic. This fascinating study doesn't shy away from the complexity of our current economy, but it's written with the layperson in mind, resulting in an indispensable guide for anyone looking to navigate the storms with an intact portfolio. (Jan.)