If It's Raining in Brazil, Buy Starbucks : The Investor's Guide to Profiting from News and Other Market-Moving Events [Hardcover]

Peter Navarro (Author)

Book Description

Publication Date: August 20, 2001

From mid-March to mid-May of 2000 the NADSAQ suffered a 40 percent drop from it's all-time high of 5132. This tumble was caused by a combination of forces: the failure of Microsoft and the Justice department to resolve their anti-trust dispute, an unexpected jump in the CPI, and Federal Reserve Chairman Alan Greenspan's increase in interest rates. The drop eliminated millions of dollars of wealth and left thousands of investors wiped out. The lesson was clear: any trader or investor who ignores the power macroeconomic forces have over the world's financial markets will lose more than they should. This text introduces the trader and investor to the power of large, global economic forces and explains in detail how these forces affect the market. It provides a big picture overview of the global fundamentals that move the market as well as indivdual stocks, clearly showing the links between major economic events and stock market movement. The author looks at how and why these sectors respond differently to economic forces. The book applies macroeconmic theory to the practical world of stock trading, using real-life examples to illustrate key points and simulation and case studies to show profitable trading based on macroeconomic news. The author focuses on specific macroeconomic forces, which economic indicators are important to follow, and which sectors of the economy react to different indicators, providing traders and investors with clear trading signals. Topics include: trading in inflationary or recessionary environments, how fiscal and monetary policy affect the market, and technolgical change and how to take advantage of it.

Editorial Reviews

From the Back Cover

How to Understand the Forces that Shape Today's Financial Markets­­and Act on Rising or Falling Prices Before They Hit

Sharp moves in stock prices­­whether up or down­­tend to give ample warning signs before they arrive. If It's Raining in Brazil, Buy Starbucks reveals the signals that professional investors look for, then explains how to read those signals and discern their true meanings to either profit from sudden upsurges in prices or protect yourself against unnecessary losses. The book avoids esoteric mathematical formulas and programs to concentrate on real-world techniques and strategies. It will show you how to work with global economic forces­­instead of against them­­to build a strong, adaptive, and intelligent portfolio.

Praise for If It's Raining In Brazil, Buy Starbucks...:

"In targeting the market events that cannot be ignored, If It's Raining In Brazil, Buy Starbucks does a great job separating the thought process of the amateur investor from the professional. Navarro's book gives the reader a valuable insight into market psychology."­­David S. Nassar, CEO, Market Wise Securities, Inc., Author, How to Get Started In Electronic Day Trading and Rules of the Trade

"Witty, fun, and very informative...Peter Navarro has come as close as you can to creating the ultimate roadmap to understanding how news and economic events affect markets. I wish this book had been available when I started my trading career."­­Oliver L. Velez, CEO, Pristine Capital Holdings, Inc.

"Any trader or investor that ignores the power of macroeconomics over the world's financial markets will, sooner or later, lose more than they should­­and perhaps more than they have. The purpose of this book is to help you become a "macrowave investor." This is an individual who not only can learn to jump out of the way when the macroeconomic freight train is coming but who can also jump on that train and ride it for a profit­­whichever direction it is going."­­From the Prologue

Today's global markets are part of a much larger world, one dominated by fluid government policies, volatile political unrest, and other interacting forces. If It's Raining in Brazil, Buy Starbucks quantifies how these far-reaching factors affect stock prices, and how you can trade more effectively by understanding the direct and indirect links between them.

Using in-depth analysis, case studies, and real-life examples, Harvard-trained economist and professor Peter Navarro provides a big picture overview of the global, macroeconomic fundamentals that move the market. At the same time, he clearly shows the links between major economic events and the movements of individual stocks, quantifying­­in terms the average investor can understand and use­­how these forces impact specific sectors of the stock market.

The resulting book is valuable for every individual­­from swing trader to buy-and-hold investor­­who needs to know when and where to get into the market, when and where to avoid the market, and how to hedge investments to guard against sudden and dramatic price upheavals. Look here to learn more about:

• Event-based strategies that consistently identify profitable trading opportunities
• Which economic indicators consistently provide the most predictive power
• Strategies for profitable trading during periods of inflation and recession

Today's global stock market doesn't work in a vacuum. As an investor, you have no control over the forces impacting individual stock prices. You can only control your investment decisions as they relate to those forces. If It's Raining in Brazil, Buy Starbucks will help you track economic events and understand which events provide the greatest opportunities or risks. In doing so, it will also help you appropriately structure your portfolio and trading activities to successfully apply "macrotrading" principles­­regardless of the market's overall direction.

About the Author

Peter Navarro is a professor of business and economics at the University of California-Irvine. He received his Ph.D. in economics from Harvard University and has written several well-received college textbooks. Navarro has written articles for Harvard Business Review, Business Week, Wall Street Journal, New York Times, Los Angeles Times, and Washington Post. He has also created an interactive, multimedia CD-ROM for McGraw-Hill Higher Education called The Power of Macroeconomics that supports several McGraw-Hill Higher Education economics college textbooks. The author has also created a powerful website (www.powerofeconomics.com; see backup material) to support the CD-ROM.

Product Details

• Hardcover: 269 pages
• Publisher: Mcgraw-Hill; 1st edition (August 20, 2001)
• Language: English
• ISBN-10: 0071373691
• ISBN-13: 978-0071373692
• Product Dimensions: 9.3 x 6.2 x 1 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 4.0 out of 5 stars  See all reviews (20 customer reviews)
• Amazon Best Sellers Rank: #136,412 in Books (See Top 100 in Books)

More About the Author

Peter Navarro is a business professor at the University of California, Irvine. His latest book is "The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage."

He is author of the bestselling investment book If It's Raining in Brazil, Buy Starbucks" and the bestselling audio lecture course "Big Picture Investing: How, When, and Why the Stock Market Moves." His weekly newsletter on the economy and stock market is distributed widely and is available to the public at www.peternavarro.com .

A widely sought-after and gifted public speaker, Navarro has appeared frequently on Bloomberg TV, CNN, CNBC, NPR, and all three major network news shows. Navarro's articles have appeared in a wide range of leading publications, including Barrons, Business Week, Harvard Business Review, The New York Times, The Wall Street Journal, and Sloan Management Review.

Professor Navarro holds a B.A. from Tufts University and a Ph.D. in economics from Harvard.