The Financial Domino Effect: How to Profit Now in the Volatile Global Economy

Introduction
Part 1 The Fundamentals of the Domino Effects Framework
Chapter 1 Introduction to the Domino Theory and the Framework of Domino Effects
Chapter 2 Three Categories of Domino Effects
Chapter 3 Channels of Contagion, Transmission, and Spillovers
Chapter 4 Policy Responses
Chapter 5 Symptoms
Part 2 Application of the Financial Domino Effects Framework
Chapter 6 Disintegration of the European Monetary Union: A Prelude
Chapter 7 The Euro-Zone Debt Crisis in the Context of the Financial Domino Effects Framework
Chapter 8 Conclusion: Strategies for Navigating Volatile Markets
References
Index
About the Author

Predict and profit from the chain reactions of market turmoil

“If you care about the inner dynamics and investors’ reactions to the emerging new financial world that will increasingly consist of ‘path-dependent, multimodal, fat-tailed outcomes,’ Ben Emons’s new book is a must-read. In a coherent and clear framework, Ben shows how falling dominoes in a world of fast markets and uniquely new possibili¬ties creates a market landscape we might never have prepared for.”
—Vineer Bhansali, Managing Director, Portfolio Manager, PIMCO

“At some point after getting your financial life in order, you may well have money to invest. Where should you put it, especially when worldwide markets are in flux? Ben Emons, a senior vice president at Pimco, the investment company that runs the world’s largest bond fund, addresses that question in The Financial Domino Effect.”
—The New York Times

“A great book; it’s a very smart book. This is not general reading but it’s something accessible to anyone."
—Tom Keene, Bloommberg Radio

When a major political or financial event happens, the impact disseminates like a contagion across markets and sovereign boundaries. Like a row of toppling dominoes, the effect of the crisis accelerates along various paths. The Financial Domino Effect enables you to benefit from these moving catastrophes and helps you navigate current changes taking place in governmental and financial systems.

At the heart of this progressive book is a powerful framework for analyzing and interpreting the variety of connected influences in the three main domino effects categories—social-political, economic, and financial. By examining the aftermath of such recent milestone events as the collapse of Lehman Brothers, the Occupy Wall Street movement, and the Middle East protests, it shows you how to apply domino theory to become a more knowledgeable and astute portfolio manager. Written with the everyday inves¬tor in mind, this hands-on resource takes you to the next level by delving into such consequential topics as:

How easily complex domino effects can become and what it means to your portfolio Six symptoms in the aftermath of a financial or sovereign crisis Post–financial crisis responses, such as quantitative easing (QE), credit easing, and competitive quantitative easing (CQE)How the dissemination and speed of domino effects relate to monetary transmission

The second part of the book goes into great depth examining the euro zone debt crisis through the framework. This crisis is particularly unique because it is a domino effect of three kinds—social, economic, and financial—and it has not fully played out. This timely guide takes you step by step through the crisis to a final analysis. In the end, you will be prepared to plan for the myriad of far-reaching consequences and balance your portfolio.

Financial crises will happen with high frequency. The Financial Domino Effect helps you stay on top when it all goes down.