The Alchemy of Finance

by Soros, George; Volcker, Paul A.

• ISBN13: 9780471445494
• ISBN10: 0471445495
• Edition: 2nd
• Format: Paperback
• Copyright: 2015-06-15
• Publisher: WILEY

Summary

New chapter by Soros on the secrets to his success along with a new Preface and Introduction. New Foreword by renowned economist Paul Volcker "An extraordinary . . . inside look into the decision-making process of the most successful money manager of our time. Fantastic." -The Wall Street Journal George Soros is unquestionably one of the most powerful and profitable investors in the world today. Dubbed by BusinessWeek as "the Man who Moves Markets," Soros made a fortune competing with the British pound and remains active today in the global financial community. Now, in this special edition of the classic investment book, The Alchemy of Finance, Soros presents a theoretical and practical account of current financial trends and a new paradigm by which to understand the financial market today. This edition's expanded and revised Introduction details Soros's innovative investment practices along with his views of the world and world order. He also describes a new paradigm for the "theory of reflexivity" which underlies his unique investment strategies. Filled with expert advice and valuable business lessons, The Alchemy of Finance reveals the timeless principles of an investing legend. This special edition will feature a new chapter by Soros on the secrets of his success and a new Foreword by the Honorable Paul Volcker, former Chairman of the Federal Reserve. George Soros (New York, NY) is President of Soros Fund Management and Chief Investment Advisor to Quantum Fund N.V., a $12 billion international investment fund. Besides his numerous ventures in finance, Soros is also extremely active in the worlds of education, culture, and economic aid and development through his Open Society Fund and the Soros Foundation.

Author Biography

<b>GEORGE SOROS</b> is Chairman of Soros Fund Management, which serves as the principal investment advisor to the multibillion dollar Quantum Group of Funds. Soros&#8217;s flagship Quantum Fund is recognized as the most successful investment fund ever, returning an average 31 percent annually for more than thirty years. Soros has been an important philanthropist since 1979. His charitable foundations are active in more than fifty countries and spend nearly half a billion dollars each year to support projects in education, public health, civil society development, human rights, and many other areas.

Table of Contents

Foreword to the New Edition
by Paul A. Volcker	xi
Foreword to the First Edition
by Paul Tudor Jones II	xv
New Preface	xix
NEW INTRODUCTION	1	(48)
Part One THEORY
1. Reflexivity in the Stock Market	49	(24)
2. Reflexivity in the Currency Market	73	(12)
3. The Credit and Regulatory Cycle	85	(10)
Part Two HISTORICAL PERSPECTIVE
4. The International Debt Problem	95	(12)
5. The Collective System of Lending	107	(8)
6. Reagan's Imperial Circle	115	(8)
7. Evolution of the Banking System	123	(10)
8. The "Oligopolarization" of America	133	(12)
Part Three THE REAL-TIME EXPERIMENT
9. The Starting Point: August 1985	145	(8)
10. Phase 1: August 1985-December 1985	153	(48)
11. Control Period: January 1986 July 1986	201	(40)
12. Phase 2: July 1986-November 1986	241	(54)
13. The Conclusion: November 1986	295	(12)
Part Four EVALUATION
14. The Scope for Financial Alchemy: An Evaluation of the Experiment	307	(10)
15. The Quandary of the Social Sciences	317	(8)
Part Five PRESCRIPTION
16. Free Markets Versus Regulation	325	(8)
17. Toward an International Central Bank	333	(18)
18. The Paradox of Systemic Reform	351	(4)
19. The Crash of '87	355	(16)
Epilogue	371	(6)
Notes	377	(4)
Appendix	381