Perspective is a valuable tool when it comes to dealing with the ups and downs of the financial markets. More often than not, a money manager’s perspective is honed over time by navigating through various market cycles and significant events. While being well versed in the history of the markets helps advisors to steer clients through difficult situations, perspective can also be shaped through other forms of continuous learning that help you to stay on track with the latest developments and trends in your field, thereby keeping your skills proficient. Often a good read can help shed light on some aspect of the market, whether historical or present, or provide some insight into how to service your client base. There are a number of good publications regarding financial markets, and here we bring to you five books that will help shape your viewpoint, empower you and lead you to engage in fruitful discussions with your clients. This perspective is a critical factor in addressing your clients’ needs and concerns and in building your business.
- Random Walk Down Wall Street: This classic, authored by Burton Gordon Malkiel, is a must read for those who want to have a keen insight into the world of investing. This book delineates the diverse investment opportunities from real estate investments to money markets, bonds and stocks. There is also an exclusive chapter on behavioral finance, dealing with the psychology behind investment decisions.
- The Great Crash: This book by John Kenneth Galbraith revolves around the Great Depression and assists the reader in having an in-depth comprehension of the recent recession. Incorporating a noteworthy analysis of the financial collapse of 1929, the book takes the reader through the power plays rampantly operating across the financial community. Written in a lucid style, this is a great book for investors and financial advisors.
- The Big Short: Written by Michael Lewis, The Big Short: Inside the Doomsday Machine, is a non-fictional narrative regarding the housing and credit bubble at the immediate start of the 21st century. It talks about the main players pertaining to the credit default swap market which was placed opposite the collateralized debt obligation bubble, and which finally ended with a profit out of the financial crisis spanning from 2007 to 2010.
- Debt the First 5000 Years: In this book anthropologist David Graeber reveals a striking contrast to our conventional knowledge. He emphasizes the point that prior to the arrival of money there existed debt. The book shows that before cash and coin were invented, credit systems were in use in human communities for buying and selling of goods. The division between creditors and debtors has existed since that era.
- Motley Fool Investment Guide for Teens: A customized book for present-day money-savvy teens, this is a good manual that financial professionals can recommend to clients in order to get their teenagers started on the road to building financial acumen. It discusses a number of topics related to saving cash, investing, and identifying businesses that hold the potential to turn into future blue chips, and so on.
While this is not an exhaustive list, these books can indeed give lots of insights and make for enjoyable reading. Financial advisors and their clients can definitely gain perspective from these works.