Book Bits | 30 January 2016

Juggling with Knives: Smart Investing in the Coming Age of Volatility
By Jim Jubak
Review via Kirkus Reviews
Investment guru Jubak analyzes the growing volatility of both the financial markets and everyday life (jobs, housing, an aging population, climate change, etc.) and offers strategies for profiting in a topsy-turvy world… In this informative, often entertaining book, he details the many ways in which frequent zigzags since 2000 in the financial markets—especially abrupt changes of acceleration and direction—have combined with events in the housing, job, and retirements markets to increase our expectations about the degree of volatility in everyday life. Heightened volatility is now “embedded” in the stock market, writes Jubak.

Family Capital: Working with Wealthy Families to Manage Their Money Across Generations
By Gregory Curtis
Summary via publisher (Wiley)
Family Capital provides a unique and practical lesson on wealth management. Instead of lectures and dry discussion, this engaging book follows an archetypal wealthy family through several generations and collateral family units to show you what effective family capital management looks like long-term. You will actually listen in on meetings between the family and its wealth advisor as they grapple with the many challenges family investors face. Expert wealth advisor Gregory Curtis provides advice and insight along the way, explaining why each strategy is effective, and how you can put it to work for you.

First Entrepreneur: How George Washington Built His–and the Nation’s–Prosperity
By Edward Lengel
Summary via publisher (Da Capo Press)
Using Washington’s extensive but often overlooked financial papers, Edward G. Lengel chronicles the fascinating and inspiring story of how this self-educated man built the Mount Vernon estate into a vast multilayered enterprise and prudently managed meager resources to win the war of independence. Later, as president, he helped establish the national economy on a solid footing and favorably positioned the nation for the Industrial Revolution. Washington’s steadfast commitment to the core economic principles of probity, transparency, careful management, and calculated boldness are timeless lessons that should inspire and instruct investors even today.

The Fourth Industrial Revolution
By Klaus Schwab
Summary via
Ubiquitous, mobile supercomputing. Artificially-intelligent robots. Self-driving cars. Neuro-technological brain enhancements. Genetic editing. The evidence of dramatic change is all around us and it’s happening at exponential speed. Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, has been at the centre of global affairs for over four decades. He is convinced that the period of change we are living through is more significant, and the ramifications of the latest technological revolution more profound than any prior period of human history. He has dubbed this era the fourth industrial revolution.

Optimal Mean Reversion Trading: Mathematical Analysis and Practical Applications By Tim By Tim Leung and Xin Li
Summary via publisher (World Scientific)
Optimal Mean Reversion Trading: Mathematical Analysis and Practical Applications provides a systematic study to the practical problem of optimal trading in the presence of mean-reverting price dynamics. It is self-contained and organized in its presentation, and provides rigorous mathematical analysis as well as computational methods for trading ETFs, options, futures on commodities or volatility indices, and credit risk derivatives. This book offers a unique financial engineering approach that combines novel analytical methodologies and applications to a wide array of real-world examples. It extracts the mathematical problems from various trading approaches and scenarios, but also addresses the practical aspects of trading problems, such as model estimation, risk premium, risk constraints, and transaction costs