The World's Best Book Summaries
What’s arbitrage? How did John Meriwether’s arbitrage strategy earn Salomon Brothers a profit? Arbitrage is where investors exploit small differences in price for similar assets in two or more markets. When John Meriwether learned this technique, he used it to his advantage, earning more money than ever. Continue reading to learn more about how arbitrage works in the stock market.
What is the Efficient Market Hypothesis? How did John Meriwether use this hypothesis to perfect computer trading? The Efficient Market Hypothesis is a financial theory that states stock prices reflect all existing information. In the early 1980s, Meriwether used this theory to introduce computer-based mathematical modeling into trading. Discover how the Efficient Market Hypothesis played into Meriwether’s strategy.
How was the hedge fund LTCM formed? Why was the hedge fund created in the first place? Shortly after John Meriwether left Salomon Brothers, he sought to create a new fund. In When Genius Failed, Roger Lowenstein delves into the emergence of LTCM, its unique convergence strategy, and the high-risk, high-reward nature of its approach. Continue reading to learn about the early years of LTCM.
What was the 1997 Asian economic crisis? How did the crisis affect LTCM? Several Asian countries experienced a currency collapse in 1997. The crisis eventually found its way to the US, affecting several hedge funds, including LTCM. Here’s how the 1997 Asian economic crisis led to the collapse of LTCM.
What’s The Art of Community by Charles Vogl about? Do you belong to a community you care about and want to improve? Community expert Charles Vogl can help you achieve your goals of building or improving a community in his 2016 book, The Art of Community. He covers everything from the beginning stages of community development to the roles and responsibilities of leaders. Read below for a brief The Art of Community book overview.
What was the 1998 Russian financial crisis? How was LTCM affected by the crisis? The collapse of the Russian ruble in August and September 1998 exacerbated the impending liquidity crisis in global financial markets, intensifying the fund’s difficulties. Russia defaulted on its financial obligations, sending shockwaves throughout global financial markets. Find out how the 1998 Russian financial crisis contributed to LTCM’s downfall.
Have you ever wondered how to establish a new community? What kind of guidelines does a community need? Building a community requires establishing the fundamental components that bring your community together. In The Art of Community, Charles Vogl defines what a community is and discusses the three basic building blocks of a community. Keep reading to learn how to build a community that brings people together.
What’s Britney Spears’s book The Woman in Me about? How did Spears break free of her conservatorship from her father? Britney Spears has been a pop music icon since she was a teenager. In The Woman in Me, Spears details the ups and downs of her career and private life, from the joy she’s found to the trauma she’s endured. Read below for a brief overview of The Woman in Me, Britney Spears’s book on freeing herself from her trauma and struggles.
What was Britney Spears’s childhood like? How did Spears become a child star? Spears was born on December 12, 1981, to parents whose marriage was already rough due to her father’s drinking. Spears writes that ever since she can remember, music was an escape from her problems at home, and singing was the only way she could safely express herself. Keep reading to learn more about Spears’s childhood and her rise to stardom.
Why did the hedge fund LTCM collapse? What economic crises contributed to the downturn? The year 1997 was the beginning of the end for LTCM, as it succumbed to the enormous risks it had taken on, along with the combined pressures of the 1997 Asian financial crisis and the 1998 Russian financial crisis. We’ll explore how unexpected volatility began to sink the fund. Check out the events that led to this hedge fund collapse.