Cocktail Economics:Discovering Investment Truths from Everyday Conversations - Hardcover

A straightforward plan for managing your investment portfolio. Canto calls his brand of investment theory "cocktail economics" because it is conversational and filled with entertaining anecdotes. But there is no mistaking the seriousness of his intent-to generate above-average returns on your investments. His plan "specifically is concerned with the big picture, with the broad macro worldwide forces that act on all investments"-based on the principle that for every economic action there is a predictable market reaction, and that investments can be timed to the swings in asset classes. It is no mystery that assets-be they small caps, large caps, value or growth stocks, international or domestic shares, bonds or T-bills-react to economic shocks and trends (for example, monetary-policy changes, shifts in inflation and GDP growth) in ways that can be inferred. Using a combination of class benchmarks, macroeconomic forecasting and passive/aggressive strategies, Canto generates specific, reliable investment suggestions-for instance, that inelastic industries respond to positive economic shocks with below-average employment increases and above-average profit gains. A sound and intelligible blueprint for investment. --Kirkus Business & Personal Finance Newsletter (May 2007) Read Cocktail Economics. It educates and entertains (there is no shortage of anecdotes and real-world examples) while offering simple-to-follow instructions on how to do better than the average investor. It's also an excellent primer on how to argue like a supply-sider - which is not a bad thing if you like winning arguments. --Larry Kudlow, NRO's Economics Editor, is host of CNBC's Kudlow & Company and author of the daily web blog, Kudlow's Money Politic$ (7/2007)

What can moonshine, mountain climbers, power plants, salmon, football players, and well-known celebrities teach you about investing? More than you ever imagined! Through entertaining, easy-to-understand anecdotes, analogies, and examples, Canto reveals why the most successful investment strategies reflect a balance of active and passive approaches. You'll learn how to "read" economic cycles, identifying the specific asset classes most likely to outperform in tomorrow's business environment. Construct and optimize your winning investment plan, step-by-step, from start to finish! MAKE HAY WHILE THE SUN SHINES The case for predicting, forecasting, and timing PASSIVE INVESTING? ACTIVE INVESTING? NO. BOTH. Why you need to take both sides in the never-ending debate ELASTICITY: CATCH IT IF YOU CAN Putting industry behavior to work for you CALIFORNIA, FRANCE, AND THE "LOCATION EFFECT" Investing internationally in the age of globalization TURN "SMOKE" INTO "SIGNALS" Making the most of publicly available price data YOUR PORTFOLIO VS. THE GOVERNMENT Anticipating and responding to regulations and taxation TILT TOWARD SUCCESS, ONE STEP AT A TIME Build your benchmark portfolio, then optimize it for changing environments Victor Canto reveals exactly how the economy affects markets and how to "read" business cycles so you can profit from every shift in the business cycle. Among the topics covered: investing internationally in the age of globalization; transforming price data into usable market "signals"; anticipating the impact of regulations and taxation; and more. From start to finish, Canto's focus is practical, and his focus is simple: outstanding investment results.