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CNBC 24/7 Trading Around the Clock, Around the World
ISBN: 0471215309     Date Published: 2002-05-10     Author(s): Barbara Rockefeller
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310 Pages
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Editorial Review - Book Description:

Nothing has so altered the investment landscape in the past five years as the Internet and the CNBC network. The availability of real-time financial news, data and analysis, and instant order entry and execution have empowered investors and democratized financial markets. Barbara Rockefeller`s CNBC 24/7 Trading is a primer for what`s fast approaching--a trading day that never ends, where at least 500 international stocks can be bought or sold electronically anytime, anywhere.

The book`s main theme is the importance of including foreign stocks in a portfolio to lower risk and increase returns. Current portfolio-management theory, or "modern portfolio theory," holds that foreign stocks have historically outperformed American stocks and tend to move up and down at different times, as well. Thus, a portfolio that includes both is not only less risky but also likely to perform better over time. The point of optimum diversification, the "efficient frontier," is where the greatest returns are achieved with the least risk. They make the case that to not diversify is to actually take a bigger risk. In fact, today more money is invested and managed according to the tenets of modern portfolio theory than by any other method. Yet, missing in this book is any discussion about the impact of an increasingly wired world on stock volatility everywhere, and especially on the "noncorrelation" between U.S. and foreign stocks, on which modern portfolio theory is predicated. Recall how quickly the Asian financial crisis spread to Brazil and then to Russia just a couple of years ago. In the near future, events may well impact all stocks globally in the same way at the same time.

The book explains well the many risks in buying foreign securities. There`s currency risk; country-specific economic and political risks; foreign-market, liquidity, broker, and back-office risk; foreign-company operational risk; and accounting standards that are anything but standard. What`s more, it`s harder, at least for now, to get timely and accurate news and financial data from overseas. The book does cover several theoretically safer methods of investing abroad, including American Depositary Receipts, iShares (foreign index shares), and open- and closed-end funds. And there are sections on the basics of foreign exchange and even charting for beginners.

Investors interested in taking a financial worldview will find here all the reasons they should--and plenty of things to worry about if they do. --Scott Harrison

Customer Review:
Total Reviews: (12)
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22 of 25 People found the following review helpful.

Fair warning, December 19, 2000 ByDesmond MacRae (New York, NY United States) - See all my reviews This review is from: CNBC 24/7 Trading : Around the Clock, Around the World (Hardcover) A recent reviewer states incorrectly that Barbara Rockefeller's 24/7 Trading fails to note that the increasingly wired world raises volatility and affects the correlations among global stocks because this is one of the main points in the book. To wit: "...the developed world is so wired together these days that a drop in the Dow and the Nasdaq is often followed by an equivalent drop in the Nikkei (225 (Japan), DAX (Germany), CAC (France), DTSE 100 (UK) and other major indices." (p.187) She continues, saying that the benefits of international diversification may be exaggerated because a bear market in the United States contaminates other markets, at least in developed countries.Note please some additional points on this topic. One is that the author advises that many portfolio diversification exercises use only classes of securities, rather than the securities themselves, which she describes as a sub-optimal practice because the same class of securities can contain...
17 of 20 People found the following review helpful.

Excellent resource for serious market watchers, November 23, 2000 By A Customer This review is from: CNBC 24/7 Trading : Around the Clock, Around the World (Hardcover) The last couple of trading books I've picked up (and decided not to purchase)were too fluffy, celebrity driven. This book is different. No theory for theory's sake -- lot's of thoughtful strategies that seriously improved my ability to analyze market trends as well as individual stock offerings. I'm not a professional trader, but I do take investing very seriously and have been doing more of it myself (without a broker) and have begun exploring trading 24x7. I definitely recommend this book to anyone who is a serious investor and is already familiar with the consistent and reliable financial reporting of CNBC.
9 of 11 People found the following review helpful.

Thrill-o-minute romp it isn't..., February 2, 2001 By A Customer This review is from: CNBC 24/7 Trading : Around the Clock, Around the World (Hardcover) Although Barbara Rockefeller's attention to detail and obvious knowledge of the inside world of the life of a stock trader are quite phenomenal, I found the story lacking direction, and the climax weak. The characters of George Soros and Abby Joseph Cohen, for example, are minimally developed at best, and unnecessarily verbose at times. But Rockefeller has most certainly done her homework in terms of setting the stage for her story, an example that more contemporary writers should heed. All in all, however, this was a quite satisfying read!
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