Amazon.com Review
Get ready, investors: the graying of America, the resurgence of Japan, global warming, and six other major trends will jar the world's stock markets in the next century. "Because the changing world continually buffets the markets, we cannot blindly throw money into stocks, into mutual funds, or into a bank account," warns leading economist Todd G. Buchholz in
Market Shock. Instead, investors must be prepared to capitalize on opportunities as they unfold, says Buchholz, also the author of the bestseller
New Ideas from Dead Economists. For instance, with the aging of baby boomers, savvy investors should begin moving into health-care and pharmaceutical stocks. And with the prospect of global warming, investors should consider insurance companies that are avoiding coverage of homes in low-lying coastal regions. The other six economic and social trends: a boom in minority populations; the biotechnology and information revolutions; China's growing importance in the global economy; a possible jump in crime; the potential failure of European unity; and the rising fees and slumping performance of mutual funds.
Buchholz begins each chapter with a futuristic gloom-and-doom scenario and a fictional news flash. Without naming particular companies, he then describes the sorts of investments likely to flourish during those events. Market Shock can help people sidestep some investing minefields and possibly profit from some major trends that could transform the world's economies. --Dan Ring
--This text refers to an out of print or unavailable edition of this title.
From Publishers Weekly
Buchholz's broad picture of the short-term socioeconomic future is cleverly written and entertaining. It's the nature of such crystal ball-gazing that only time will tell if it's wise as well. The nine upheavals Buchholz foresees are the graying of America; consolidation in the mutual fund industry; a "darker America," as minorities play a larger role in the economy; a politically and economically resurgent Japan; European unification; China's entrance into the world economy; global warming; a rise in the U.S. crime rate; and the continuing development of high-tech and biotech businesses, many of which will fail and many of which will change the way we live. To spice up his presentation, Buchholz (New Ideas from Dead Economists) writes short fictional scenarios involving average Americans coping with the upheavals he predicts. He also writes mock news flashes (e.g., French union members demanding that the "new European Central Bank slash interest rates to reenergize France's sagging economy" while Dutch shopkeepers demand the bank raise rates to combat inflation). Such flourishes, combined with his insightful use of demographic data, make Buchholz's look into the future an enjoyable exercise in speculation. However, when telling readers which investment strategies would be best in certain situations, Buchholz turns a bit vague, promising "financial ruin" for "the unprepared" while forecasting that the "savvy investor" will be rewarded with "tremendous opportunities to make money." (Aug.)
Copyright 1999 Reed Business Information, Inc.
--This text refers to an out of print or unavailable edition of this title.
