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HOW TO LISTEN WHEN MARKETS SPEAK

Lawrence McDonald

Risks, Myths, and Investment Opportunities in a Radically Reshaped Economy

A New York Times bestselling author and leading expert on market risk argues that seismic shifts in the global economy will trigger a multi-trillion-dollar migration of wealth, tracing the fateful decisions that created this crisis - and outlines new rules of investing for the forward-thinking.
From Wall Street to the White House, the fantasy of an eventual "return to normal" is still alive and well, nurtured by dangerously outdated theories. But the economic world as we know it - and the rules that govern it - are over. In the coming decade, we'll witness sustained inflation, a series of sovereign and corporate debt crises, and a thundering of capital out of financial assets into hard assets - and few are prepared.

Lawrence McDonald got a real-world education in market risk when, as a Lehman Brothers VP, he watched the firm ignore flashing warning signs before its collapse. His analysis led him to identify twenty-one indicators for gauging the health of an economy and detecting early signals of opportunity and danger.

In How to Listen When Markets Speak, McDonald unveils his unique predictive models, connecting surprising dots between past, present, and future and outlining actionable trading ideas. Readers will learn:

- How disastrous Fed policy will collide with an increasingly fragmented geopolitical landscape to keep U.S. inflation near 3-5% for the next decade
- How growing energy demand, underinvestment in infrastructure, and cozy Russia-Saudi Arabia relations will keep oil prices at historic highs
- Why hard assets and rare minerals like lithium and cobalt will outperform growth stocks, U.S. treasuries, and passive investment strategies
- Why America will likely lose its position as a global superpower and holder of the world's premier reserve currency, and may be forced to slash Social Security, Medicare, and military spending

Rather than merely doomsaying, How to Listen When Markets Speak equips readers to make sense of our current moment, resist reactionary narratives and baseless analysis, and pounce on a new investing playbook.

LAWRENCE G. McDONALD is a managing director of Pangea Capital Management LP. He was, until 2008, vice president of distressed debt and convertible securities trading at Lehman Brothers. He ran an extremely successful joint venture between the firm's fixed income and equity divisions and was one of Lehman's most consistently profitable traders. McDonald is also cofounder of Convertbond.com, named by Forbes magazine as "Best of the Web" from 2000 to 2003, specifically citing it as the Web's premier source for convertible securities information, valuation, and news.
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Book

Published 2024-01-16 by Currency

Book

Published 2024-03-26 by Currency

Comments

I can't tell you how much I learned from How to Listen When Markets Speak. The historical perspectives and insights are something every investor needs to know. Buy this book.

Smart people listen carefully, and they use what they hear to continually question their assumptions. When it comes to markets and their impact on our lives, things change - even the big things. Larry McDonald's, How to Listen When Markets Speak is a consistently compelling contribution to today's debate on the future of financial markets and a challenge to assumptions that have outlived their value.

As soon as I finished How to Listen When Markets Speak, I took a long, hard look at my portfolio. Any investor with skin in the game needs to buy this book.

As a journalist who is paid to be skeptical, I have been tracking Larry McDonald's views on markets for many years. His provocative, passionate, and sometimes prophetic insights are always worth pondering, even (or especially) when you disagree - and reading his analysis has often helped me to see the situation more clearly. I don't always sit in the same camp, but I appreciate his consistent focus on value investing. His latest book offers strong riposte to the tech hype, bull-market euphoria, and wishful thinking about a soft landing - it is thought-provoking work, particularly at a time when the global zeitgeist and order are changing in profound ways.

Larry McDonald's deep knowledge, experience, and insights have been invaluable in shaping my investment strategies, and How to Listen When Markets Speak is no different. It will sit on the edge of my desk, ready to refer back to frequently. I highly recommended it to anyone keen to protect their wealth in tumultuous times.

Chinese (complex): Business Weekly Publications ; Korean: Sangsang Academy ; UK/BC: Transworld/PRHUK