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World Event Trading: How to Analyze and Profit from Today's Headlines

World Event Trading: How to Analyze and Profit from Today's Headlines

Andrew Busch

ISBN: 978-0-470-17007-6 October 2007 240 Pages




In an age of twenty-four-hour news coverage and cutting-edge technology, world events dominate our lives and impact the financial markets. From hurricanes to the war in Iraq, we exist in a crazy, connect-the-dot planet. However, the well-prepared investor can turn these events into profits. All they need is the ability to recognize the consistent characteristics of these events and the vision to build a strategy or portfolio that can take advantage of these situations when they begin to unfold.

As a foreign exchange strategist with over twenty years of financial experience, author Andrew Busch knows what it takes to make it in today’s dynamic market. And now, with World Event Trading, he wants to show you how.

Filled with in-depth insights and expert advice, this practical guide examines three categories of world events—infectious diseases, natural disasters, and politics—and provides hands-on strategies for trading profitably on each. Using actual examples of the war in Iraq, Hurricane Katrina, and other recent ""page one stories,"" Busch shows you how to understand all-important market moods and anticipate profitable trades. He also reveals little-known details on legendary event-driven trading successes, illustrating how any trader can repeat them in different market environments.

Andrew Busch is the Global FX Market Strategist for BMO Financial Group’s Investment Banking Division in Chicago. He is a recognized expert on the world financial markets and how these markets are impacted by political events. Busch’s views appear in his daily newsletter, the Busch Update, which reaches 5,000 investors and financial professionals. He also writes a weekly column that appears on The Globe and Mail Web site on Fridays and in print on Mondays (circulation 40,000). Busch makes weekly appearances on CNBC’s Closing Bell with Maria Bartiromo and is frequently quoted by the Wall Street Journal as well as other news services. He graduated Phi Beta Kappa with a BA in economics from Ohio Wesleyan University and received an MBA from the University of Chicago.

Foreword ix

About the Author x

Acknowledgments xi

Introduction 1

PART I Infectious Diseases

CHAPTER 1 The Black Plague: A Paradigm for Today 5

CHAPTER 2 1918 Spanish Flu 17

CHAPTER 3 Mad Cow Disease 25

CHAPTER 4 Severe Acute Respiratory Syndrome (SARS) 47

CHAPTER 5 Bird Flu 69

PART II Natural Disasters

CHAPTER 6 Hurricanes 83

CHAPTER 7 Earthquakes and Tsunamis 121

CHAPTER 8 Global Warming 135

PART III Politics

CHAPTER 9 Terrorism 151

CHAPTER 10 Government Change 171

CHAPTER 11 Government Scandals 189

CHAPTER 12 Modern, Short-Term War 205

Conclusion 229

Bibliography 231

Index 237

""World Event Trading: How to Analyze and Profit from Today's Headlines is one of the more unique and interesting financial books that I have read in quite a while. Though often times trading books deal with the minutia of market movements, Andrew examines three types of world events: infectious diseases, natural disasters, and politics, from a historical perspective before showing how all three impact the financial markets."" (-- Tom Aspray, Book of the Month Reviews,, August 2007)