Macro Investing

The Alchemy of Finance (5 Stars)

In The Alchemy of Finance, Soros goes through how reflexivity applied to the Lesser Developed Country lending, currency trading, equities, including the crash in 1987, and credit cycles generally.  He gives a detailed description of how his theories worked in 1985-6.  He also gives you some of his political theorizing, but that’s just a small price to pay for the overall wisdom there.

Now, Soros on Soros is a series of edited interviews.  The advantage is that the interviewers structure the questioning, and forces more clarity than in The Alchemy of Finance.  The drawback (or benefit) is that the book is more basic, and ventures off into non-economic areas even more than The Alchemy of Finance.  That said, he shows some prescience on derivatives (though it took a long time to get to the promised troubles), though he missed on the possibility of European disintegration.

On the whole, Soros on Soros is the simpler read, and it reveals more of the man; the Alchemy of Finance is a little harder, but focuses more on the rationality within boom/bust cycles, and how one can profit from them.

To buy the book: The Alchemy of Finance

Soros on Soros (5 Stars)

In The Alchemy of Finance, Soros goes through how reflexivity applied to the Lesser Developed Country lending, currency trading, equities, including the crash in 1987, and credit cycles generally.  He gives a detailed description of how his theories worked in 1985-6.  He also gives you some of his political theorizing, but that’s just a small price to pay for the overall wisdom there.

Now, Soros on Soros is a series of edited interviews.  The advantage is that the interviewers structure the questioning, and forces more clarity than in The Alchemy of Finance.  The drawback (or benefit) is that the book is more basic, and ventures off into non-economic areas even more than The Alchemy of Finance.  That said, he shows some prescience on derivatives (though it took a long time to get to the promised troubles), though he missed on the possibility of European disintegration.

On the whole, Soros on Soros is the simpler read, and it reveals more of the man; the Alchemy of Finance is a little harder, but focuses more on the rationality within boom/bust cycles, and how one can profit from them

To buy the book: Soros on Soros

The Great Reflation (5 Stars)

I enjoyed the book and would recommend it highly.  My only misgiving is that there wasn’t much new for me in the book, but it was very well presented.

Most average investors could benefit from the book.  It would give them a deep feel for the difficulties that we are now in.  It would tell them that there are no easy solutions, and that broad diversification is warranted, together with nimbleness to profit from volatility.

If you want to buy the book, you can buy it here:  The Great Reflation: How Investors Can Profit From the New World of Money