Economy books, macro-economic outlook for amateur investors?

[longandshort]

Can I prove what?

And the OP wants to understand the use of economics to understand investing. Not to give a dissertation.

It was a stale part of a quote in response to someone else.

Right, to understand how macro impacts investing, you need to know the concepts taught in macro and microeconomics. For example, to learn how money flows through an economy or how the spread between marginal revenue and costs impacts profits. Relationships between variables in an economy aren't static, they are dynamic. The math that helps us understand moving parts is calculus, and the study that helps us test relationships is statistics. I'd spend 2-4 hours on Khan academy to get familiar with concepts in stats and calculus (you don't need to necessarily know how to solve an equation on paper lol) before trying to do more advanced econ stuff. If you just want to know the basics of macro/micro, then the entry level textbook I suggested will suffice.

 

[SunTrader]

It was a stale part of a quote in response to someone else.

Right, to understand how macro impacts investing, you need to know the concepts taught in macro and microeconomics. For example, to learn how money flows through an economy or how the spread between marginal revenue and costs impacts profits. Relationships between variables in an economy aren't static, they are dynamic. The math that helps us understand moving parts is calculus, and the study that helps us test relationships is statistics. I'd spend 2-4 hours on Khan academy to get familiar with concepts in stats and calculus (you don't need to necessarily know how to solve an equation on paper lol) before trying to do more advanced econ stuff. If you just want to know the basics of macro/micro, then the entry level textbook I suggested will suffice.

Oh I got it wrong - you're the one wanting to give a dissertation lol.

Gee I wonder if Peter Lynch one of the alltime great investors who someone previously quoted, studied stats and calculus SMFH?

Once again trying hard to be seen as the smartest guy.

 

[longandshort]

Oh I got it wrong - you're the one wanting to give a dissertation lol.

Gee I wonder if Peter Lynch one of the alltime great investors who someone previously quoted, studied stats and calculus SMFH?

Once again trying hard to be seen as the smartest guy.

Peter Lynch did his MBA at Wharton — you bet he took stats and calculus lol.

I just don’t get why you think you can make money in a highly competitive market while choosing not to learn about said market.

 

[SunTrader]

Peter Lynch did his MBA at Wharton — you bet he took stats and calculus lol.

I just don’t get why you think you can make money in a highly competitive market while choosing not to learn about said market.

Nothing can further from the truth about me learning about said market. As for Lynch you are guessing but I did come across this other fella and what he said about the subject:-

"If calculus or algebra were required to be a great investor, I’d have to go back to delivering newspapers"

- Warren Buffett.

 

[wartrace]

I enjoy this macro podcast: https://www.macrovoices.com/
Great insights on macro and some really interesting guests.
BTW- I do NOT use this for trading, it's just information I find interesting.

 

[longandshort]

Nothing can further from the truth about me learning about said market. As for Lynch you are guessing but I did come across this other fella and what he said about the subject:-

"If calculus or algebra were required to be a great investor, I’d have to go back to delivering newspapers"

- Warren Buffett.

Stats and calculus are covered in the GMAT (required for MBA programs). You really don't know what you're talking about. Warren Buffett has an Msc. in Economics from Columbia...

Going back to my original point -- I didn't say you needed to be able to do differentials in your head. You do, however, need to understand basic concepts like multivariate calculus (concept of solving for multiple variables) and statistics (correlations, regressions, etc.).

Concepts like correlations and beta, which are fundamental to risk management, are statistical measures. If you were to take beta and use it to estimate future returns, you are using algebra. Once you begin to increase the number of factors you consider, you are starting to use calculus.

 

[katrx84]

Thank you all for the feedback. I have a solid background in calculus up to (and including) multivariate calculus, but not a lot on stochastic calculus or statistics, random processes.
Once done with "The Intelligent Investor", and "The Dark Side of Valuation" i'll follow with "Principles of Economics" by Gregory Mankiw and "Secrets of Economic Indicators: The Hidden Clues to Future Economic Trends and Investment Opportunities" by Bernard Baumohl, "The Ultimate Foundation of Economic Science" as well. There are lots of interesting suggestions but given a finite time and budget perhaps narrowing down to this would suffice for now.
This isn't really for trading or investing per se, not directly at least, though i hope that a better grasp of economy will have a positive impact overall in at least making more balanced and informed decisions, even if at an introductory level.
Once again thank you gentlemen for your time and suggestions, i truly appreciate it and hope that this information will also be of use to others in these forums.
All the best in your endeavors.

 

[2rosy]

new ideas from dead economists

however, not sure how this relates to the stock market

 

[SunTrader]

new ideas from dead economists

however, not sure how this relates to the stock market

Right, it doesn't.

Hard to trade (or invest) with your nose stuck in a book.

 

[longandshort]

@katrx84 i would take a look at Romer too, his book is very popular as a primer for masters and PhD econ programs.