When Markets Collide

The book has a understandable context that build up my interest in reading it through. Mohamed A. El-Erian is one of the most respected financial and economic analysts. He shared his insights and perspectives in the world of global economy, which the fundamental changes have taken place in today's financial and economic system.

For what I've read so far, there are some basic things which El-Erian has investigated the underlying drivers of global change to shed light on how we should,

• Think about the new opportunities and risks


• Construct an appropriately diversified and internationalised profolio


• protect your portfolio against new sources of systemic risk


• Best think about the impact of central banks and financial policies around the world

In order to conduct all of these things he wanted to emphasise on, he provides his insights on how best to exploit new opportunities and minimise exposure to changing patterns of risks.

The focus is attemtping to meet the objectives which are the ability to address on the results that anchor the belly of the distribution of ourcomes, and the fat left tail of the distribution. What's within it is the implications of the emerging global markets.

At the same time, El-Erian talked about the transformations. The fact that it is not easy to navigate transformation at which the features of initially unanticipatd and the rapid evolving. For instance, the transformation in a business is by gathering momentum.

'The markets of yesterday collide with those of tomorrow.' It implicates the dynamic changes within the fact of noises can affect the siginificance of how the markets would be easily shaped by those signal opportunities.

Dealing with some inconsistencies, there are many anomalies which have been discussed a little bit in Chapter 1. For example, Alan Greenspan has described as a 'conundrum' as successive and meaningful affective upward moves in short-term interest rates had been accompanied by downward moves in long-term interest rates in the US. Meanwhile, the emergence of inconsistencies are seemingly to have the sequential occurring within the tendency of inconsistencies occurring simultaneously, which stands for another example of anomalies.

The most interesting part is that the consideration involving the behaviour that has been noticed and understood by investors, which indicates the meaning of a adjustment if it's needed and to be aware of those factors of trade wars, high unemployment, financial market instability...etc.