'When Markets Collide', a book written by on of the leading investors Mohamed El-Erian, is an essential reading for everyone how wants to deepen his knowledge of the modern global economy ( and especially investment market ).
This books mainly tells us about the transformation in the relationship of the economies and transformations in the emerging markets, so called 'noise'. El-Erian examines the drivers ( or the causes) of this 'noise' and usually refers to his own experience.
However, the book is primarily aimed at the experienced investors or people who are deal with this markets in their work life. So, he uses special terminology which sometimes require additional thinking ( or even looking up in the dictionary) for an unexperienced reader. He also gives some interesting insights for the way the investment market will be developing in future, which perhaps might be useful for planning investment strategies.
In the first part of the book El-Eriab gives us an approach to the important of 'noise'. This importance of the noise is usually under-estimated, it is considered as a temporary event. Investors should recognise the situations where this noise can be ignored and the situations that require interpreting the signals that this noise contain. El-Erian investigates the factors of the noise and 'missing signals'
As this book was published only this year, it contains the most recent information, such as the causes and consequences of the current financial crisis. It is an essential example to illustrate the transformation of the modern economy. However, El-Erian emphasizes that "the present turmoil is neither the beginning nor the end of the transformataion phase".
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