Product Description

IF IT'S RAINING IN BRAZIL, BUY STARBUCKS

The hardcover edition of If It's Raining in Brazil, Buy Starbucks first introduced investors to "macrotrading." Instead of just theorizing, the breakthrough investing strategy actually quantifies the impact of global economic forces on specific sectors of the stock market. This paperback edition delivers macrotrading to a new and wider audience, identifying which economic indicators are essential to follow, how to trade profitably in times of recession or inflation, subtle signals that indicate imminent turning points in the market, and much more.

Product Details

• Amazon Sales Rank: #124185 in Books
• Published on: 2004-01-23
• Number of items: 1
• Binding: Paperback
• 256 pages

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Global financial markets are part of a much larger world, a world of fluid government policies, political unrest, and other unpredictable forces. If It's Raining in Brazil, Buy Starbucks quantifies how far-reaching factors affect stock prices, and how investors can trade more effectively by understanding the links between these forces and the stock market. It focuses on specific macroeconomic forces and which sectors of the economy react to different indicators, providing investors and traders with clear signals on whether to buy, sell, or sit on the sidelines. Unlike more targeted investing titles, Peter Navarro's insightful book contains benefits for all investors­­from day traders to long-term, buy-and-hold investors. Simulations and analyses, along with real-life examples and case studies, provide inside details on: How to profit from specific technological change Strategies to trade effectively in times of recession or inflation Which economic indicators to follow­­and why

From the Back Cover

The Breakthrough Trader's Guide On How to Spot--and Profit From--News-Driven Market Swings

The hardcover edition of If It's Raining in Brazil, Buy Starbucks first introduced Professor Peter Navarro's authoritative "macrotrading" system to traders around the world. Now let this paperback edition introduce you to the market-proven power of macrotrading, and show you how to increase your trading precision by more precisely quantifying the impact of economic events on specific sectors of the stock market.

"Learning to interpret news correctly is a key in successful investing. Peter Navarro gives lots of great examples to help you learn."

--Jim Rogers, Author, Investment Biker

"In targeting the market events that cannot be ignored, If It's Raining in Brazil, Buy Starbucks does a great job separating the thought process of the amateur investor from the professional. Navarro's book gives the reader a valuable insight into market psychology."

--David S. Nassar, CEO, MarketWise Securities, Inc., Bestselling author, How to Get Started in Electronic Day Trading and Rules of the Trade

"Witty, fun, and very informative...Peter Navarro has come as close as you can to creating the ultimate roadmap to understanding how news and economic events affect markets. I wish this book had been available when I started my trading career."

--Oliver L. Velez, CEO, Pristine Capital Holdings, Inc., and www.Pristine.com, Author, Tools and Tactics for the Master Day Trader

About the Author

Peter Navarro received his Ph.D. in economics from Harvard University and is a professor of business and economics at the University of California-Irvine. The author of When the Market Moves, Will You Be Ready?, Dr. Navarro has appeared on NPR and written articles for Harvard Business Review, BusinessWeek, the Wall Street Journal, and other prominent business publications.

Customer Reviews

Good Book
I like this book because the author uses a funny style. Thus, it is easy to remember some typical phenomenas in macroeconomics and stock markets. Of course, you have to read books about forecasting stock market movements very very very carefully. But this is the story about a young naive boy who go for an internship in an investment bank and listen to sucess stories of the experienced collegues - They are never talking about loss reports!

As you see I am from Germany. Therefore I can tell you: Some of Mr Navarro's causal relationships cannot work in Germany. Actually, I have read the book and made notes: This might work in the US and that might happen in Germany (or maybe in another economic zone somewhere, which i know about). The difference have a little bit to do with cultural differences but more important are differences in institutional and political systems. For example the ECB don't care about what will happen to the unemployment rate in particular Euro-countries during particular election years because it is not possible to consider all member-states equally.

But I think to have read some comments of Mr Navarro that everybody have to think on its own, and thus, find their own magical "macrowave" relationships what have a pretty simple reason: If everybody does the same, the magic doesn't work anymore... I really think to remember that he have indicated something like this in the first chapter.

Therefore, dear reader, this is a very good book because it explains that macroeconomics is linked to the financial markets although some "smart" people postulate that it is not the case anymore. It depends on the viewpoint. and Mr Navarro explains, maybe not very very very academically, that there is one wave level most people don't want to see anymore. While I have read the book I skimmed through the stock market news und macroeconomic data (of Germany / Europe) of the last years and compared them to several stocks and stock indicies - It is not exactly what Mr Navarro have written but in principal he is right.

Good Story book but not practical
Today is Nov 14th 2005, Tyson food reported it quartely profit surged to 49 percent, as operating income surged in its chicken and pork businesses also because of record corn production last year and this year, there is ample supply (inventory) of corn that should benefit Tyson food further as it can buy corn at cheap prices.
But... stock declined by 6% in the premarket trading. Reason..."Market is effecient". There are thousand of analysts who analyze these information and incorporate them in their stock price estimate. If result surpasses expection, stock price will rise else it will fall.

Just about the best stock investing book I ever read.
This book gives you different scenarios as to what can happen to the stock, currency and bond markets with every economic report that comes out. Be sure you dont get overwhelmed by all of this and perhaps focus mainly on the 3 and 4 star data that comes out for a while. I am a semi-professional stock speculator myself, and even I was overwhelmed at how much info he gives. I will surely have to keep this one on my shelf for constant reference.

He gives many entertaining samples of how real speculators would act on news and economic data. The funny thing is, many fundamental and technical analysts pay too little attention to this data, and some pay it too much heed. So you need to find the balance. I will say this; I always found economic data very boring until Peter showed us they are all pieces of a puzzle and that makes it very, very interesting indeed. I will never look at CNBC the same way again. As well, the resource guide for websites and news sources at the back of the book are worth the price of this book itself! (...)Marc