Fiscal Hangover: How to Profit From The New Global Economy

by Keith Fitz-Gerald

The rules of making money have changed-forever With the collapse of investment banks, trillion-dollar-plus government bailouts, and the Dow plunging like a rock, it's never been more important to understand-and actually profit from-the "new rules." Fact is, Fiscal Hangover , will give you an investing blueprint that will allow you to profit from the changing global economy. For the first time in 200 years, American consumers are stepping down from their position as the driving force behind the world's economy. In Fiscal Hangover , Keith Fitz-Gerald analyzes the declining power of the American consumer and introduces you to the resulting investment opportunities. Without question, the American consumer and the United States government have provided the rest of the world with liquidity in the form of cheap capital and abundant debt. But in light of recent economic events, the rules of the game have changed and that means you must change with them-if you intend on securing your financial future. Unlike most of today's finance books that simply examine the end of the American Empire, Fiscal Hangover shows you how to prepare for the fall, effectively allocate your investments, and thrive in the new global economy. This book offers specific analysis and concrete actionable steps for individual investors interested in grabbing their fair share of what will be the greatest wealth creation in the history of mankind. The coming years may hold the greatest investment opportunities of our times, but in order to take advantage of this you'll need the insights that can only be found in Fiscal Hangover .

352 pages, Hardcover

First published December 10, 2009

Reviews

[Sam · Rating 5 out of 5]

The book has 3 sections. The first is a historical review of what happened and how it shaped the today market in USA. The 2nd part is the changes of today market. And the third part is some strategic actions suggestions.

Author suggested to invest globally, and especially, China.

The history is interesting and is a good reference to understand financial events. While the last section provided some guidelines in a simple form. The book is trying to give an overview of a long trend in investment. It is a general investment guideline book. I like the history part.

[Craig · Rating 3 out of 5]

The author makes his case that fundamental changes are occurring in the world economy: that the US economy and dollar are in trouble and are losing influence; that emerging markets and especially China can expect continued strong growth and growing influence in the global economy; and that an investment strategy focused on non-US markets with a careful eye on risk and a preference for the resource sector and dividend stocks will allow the prudent investor to capitalise on these changing but opportune conditions.

Some of Fitz-Gerald’s advice seems very useful:
• You can never go broke taking profits
• If you properly manage the risks above all else, the returns will come
• Electricity demand is a good indicator of GDP growth
• Invest on the right side of major economic trends
• Always have planned exit points to protect yourself against big losses

I didn’t find much in this book with which to disagree. I do believe that the day of reckoning is coming for the USA despite the positive signs that we see today, but unlike Fitz-Gerald, I’m not so bullish about emerging markets. A collapse of the US economy will bring down the rest of the world. I’m also not convinced that China is as sound as Fitz-Gerald believes. I think the true picture of the Chinese economy is obscured, and that their stimulus spending may lead to greater problems. Overall however, I do agree that the rest of the world offers much more potential than the USA, and that there will be opportunities and better times ahead.

[Mimi Somsanith · Rating 1 out of 5]

The author takes you down memory lane on the historical points of booms and busts. I read the beginning then ended up skimming most of the book because there were few points that caught me attention for a closer look. The author provides his views on investing in emerging markets in the next decade.

[Martha · Rating 4 out of 5]

go China!