The book outlines an intriguing strategy though its fundamental assumptions require careful scrutiny.
Von Thiensen’s (Decoding the Hidden Market Rhythm—Part 1, 2014, etc.) second installment in his series on stock market cycles looks to the stars for guidance.
Believing, as some do, that the “financial markets are driven by emotions,” the author contends that if one can assess which emotions traders are collectively experiencing, one can predict (at least to some extent) and profit from the vagaries of the market. This is where heavenly bodies come in. Von Thiensen says, “There is growing evidence that the interactions between the Sun, Moon, and Earth are a factor that affects our well-being” and, by extension, our emotions. If the savvy investor is able to anticipate how these cycles will steer the emotions of other investors, they can potentially make a lot of money. By punching numbers into the author’s software (which uses built-in algorithms), the user can decode trading cycles and earn a decent profit, says Von Thiensen. He provides examples of his program’s success in an analysis from 2008 that shows that out of 22 trades, 17 led to gains. After all, “since financial markets are driven solely by emotions, it seems logical that this repetitive solar/lunar pattern must also be reflected in developments on the stock market.” It does seem like a logical enough assumption, but is it true? What of all of the other technical traders employing their own sophisticated, emotionless algorithms? Portions of the book engage in technical language (e.g. “we will use the wave to build a non-linear superposition wave based on the theory introduced on recurring energy patterns”); however, the content is still steered by astrology. The book certainly provides guidance for adventurous investors who are willing to put the author’s software to the test. Those readers already firm in their strategies seem unlikely, however, to convert to a computer model that is based on “how energy will influence the mood of investors.” As trading methods become ever more technologically sophisticated, banking on the mood of investors may seem like a risky proposition.
The book outlines an intriguing strategy though its fundamental assumptions require careful scrutiny.Pub Date: May 14, 2014
ISBN: 978-1-4995-6259-0
Page Count: 238
Publisher: CreateSpace
Review Posted Online: Aug. 20, 2017
Review Program: Kirkus Indie
Occasionally wonky but overall a good case for how the dismal science can make the world less—well, dismal.
“Quality of life means more than just consumption”: Two MIT economists urge that a smarter, more politically aware economics be brought to bear on social issues.
It’s no secret, write Banerjee and Duflo (co-authors: Poor Economics: A Radical Rethinking of the Way To Fight Global Poverty, 2011), that “we seem to have fallen on hard times.” Immigration, trade, inequality, and taxation problems present themselves daily, and they seem to be intractable. Economics can be put to use in figuring out these big-issue questions. Data can be adduced, for example, to answer the question of whether immigration tends to suppress wages. The answer: “There is no evidence low-skilled migration to rich countries drives wage and employment down for the natives.” In fact, it opens up opportunities for those natives by freeing them to look for better work. The problem becomes thornier when it comes to the matter of free trade; as the authors observe, “left-behind people live in left-behind places,” which explains why regional poverty descended on Appalachia when so many manufacturing jobs left for China in the age of globalism, leaving behind not just left-behind people but also people ripe for exploitation by nationalist politicians. The authors add, interestingly, that the same thing occurred in parts of Germany, Spain, and Norway that fell victim to the “China shock.” In what they call a “slightly technical aside,” they build a case for addressing trade issues not with trade wars but with consumption taxes: “It makes no sense to ask agricultural workers to lose their jobs just so steelworkers can keep theirs, which is what tariffs accomplish.” Policymakers might want to consider such counsel, especially when it is coupled with the observation that free trade benefits workers in poor countries but punishes workers in rich ones.
Occasionally wonky but overall a good case for how the dismal science can make the world less—well, dismal.Pub Date: Nov. 12, 2019
ISBN: 978-1-61039-950-0
Page Count: 432
Publisher: PublicAffairs
Review Posted Online: Aug. 28, 2019
Kirkus Reviews Issue: Sept. 15, 2019
SEEN & HEARD
A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.
A well-constructed critique of an economic system that, by the author’s account, is a driver of the world’s destruction.
Harvard Business School professor Henderson vigorously questions the bromide that “management’s only duty is to maximize shareholder value,” a notion advanced by Milton Friedman and accepted uncritically in business schools ever since. By that logic, writes the author, there is no reason why corporations should not fish out the oceans, raise drug prices, militate against public education (since it costs tax money), and otherwise behave ruinously and anti-socially. Many do, even though an alternative theory of business organization argues that corporations and society should enjoy a symbiotic relationship of mutual benefit, which includes corporate investment in what economists call public goods. Given that the history of humankind is “the story of our increasing ability to cooperate at larger and larger scales,” one would hope that in the face of environmental degradation and other threats, we might adopt the symbiotic model rather than the winner-take-all one. Problems abound, of course, including that of the “free rider,” the corporation that takes the benefits from collaborative agreements but does none of the work. Henderson examines case studies such as a large food company that emphasized environmentally responsible production and in turn built “purpose-led, sustainable living brands” and otherwise led the way in increasing shareholder value by reducing risk while building demand. The author argues that the “short-termism” that dominates corporate thinking needs to be adjusted to a longer view even though the larger problem might be better characterized as “failure of information.” Henderson closes with a set of prescriptions for bringing a more equitable economics to the personal level, one that, among other things, asks us to step outside routine—eat less meat, drive less—and become active in forcing corporations (and politicians) to be better citizens.
A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.Pub Date: May 1, 2020
ISBN: 978-1-5417-3015-1
Page Count: 336
Publisher: PublicAffairs
Review Posted Online: Feb. 16, 2020
Kirkus Reviews Issue: March 15, 2020
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