MoneyShift: How to Prosper from What You Cant Control

Praise For MoneyShift "MoneyShift is a brilliant book, authoritative yet enthralling as it describes how past investment strategies no longer apply. Nowhere else have I seen such a coherent and convincing explanation of the financial crisis of 2007 and its implications for the investor." —Leonard Mlodinow, author of Subliminal: How Your Unconscious Mind Rules Your Behavior and The Drunkard′s Walk: How Randomness Rules Our Lives "Jerry Webman does a fantastic job explaining our changing, complicated, and global world in understandable language. Dr. Webman makes investment issues accessible to those of modest or vast means. A solid framework for thinking!" —Bob Doll, Chief Equity Strategist, BlackRock "Jerry Webman takes on booms and busts, market highs and market lows, to tackle the current challenging financial and economic times. With clarity and purpose, MoneyShift makes it possible for the non–professional investor to join the same class as the pros. A great addition to my library." —Pimm Fox, Taking Stock with Pimm Fox, Bloomberg TV, Bloomberg Radio, Bloomberg.com "From a financial world of extreme complexity and emotion, Jerry distills a clear spirit of action. His voice, as always, is one of humor, clarity, and wisdom." —David P. Kelly, Chief Market Strategist, J.P. Morgan Funds "The global economy is changing so rapidly that long–held assumptions about prudent investing are laughably wrong. Webman translates the new realities into practical advice for ordinary investors who′ve been gobsmacked by the stock market and housing bubbles. Jerry Webman′s MoneyShift is the one guide you need now to shake off the trauma and profit from the chaos." —Peter Passell, Senior Fellow at the Milken Institute and author of Where to Put Your Money Now "When it comes to investing, we′re not in Kansas anymore. MoneyShift helps us understand how a flatter, grayer world provides new investment opportunities." — Barry Nalebuff, Milton Steinbach Professor, Yale School of Management; coauthor of The Art of Strategy

Acknowledgments ix Introduction: What’s Shifting xi Chapter 1 Where Has All the Prosperity Gone? 1 Chapter 2 What You Can’t Control 23 Chapter 3 For the New Prosperity, You’ll Need a New Investment Strategy 41 Chapter 4 Where the Wealth Is 63 Chapter 5 How to Read Your Shirt Label: The Myth and Reality of Investing in Emerging Markets 79 Chapter 6 There Is Still Profit Among the Rich 101 Chapter 7 The New Diversification: Alternatives to What? 119 Chapter 8 Investing in Human Capital—Yours 145 Chapter 9 MoneyShift: Getting Results 161 Further Reading 187 Notes 191 About the Author 197 Index 199

Dr. Jerry A. Webman is OppenheimerFunds′ Chief Economist. In this capacity, Dr. Webman provides strategic viewpoints on the financial and economic markets to investment management, financial advisors, and investors. Previously, he served as director of fixed income, overseeing portfolio managers, analysts, and traders. Dr. Webman has been involved in the investment and economic markets for almost thirty years. Prior to joining OppenheimerFunds in 1996, he was managing director and chief investment strategist at Prudential Mutual Funds. Dr. Webman began his finance career at Merrill Lynch Capital Markets. Previously, he was an assistant professor of politics and public affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University. Dr. Webman is a frequent guest on Bloomberg, Fox Business, and CNBC. He holds a BA in political science, with honors, from The University of Chicago, where he graduated Phi Beta Kappa, and a PhD in political science from Yale University. He is also a CFA charterholder.