New Books in Business, Management, and Marketing

The authors of Chains of Finance: How Investment Management is Shaped (Oxford University Press, 2017) make points that professionals already know and that end-investors ought to know: that there are a lot of cooks in the investment kitchen, and that the investment process is materially shaped by the chain of individuals and institutions that go into manufacturing investment products. Advisors, consultants, compliance, sales, portfolio managers, analysts, traders, distributors, custodians---these job titles are just part of that machinery. And they all interact with one another in a variety of ways. Most people operating in a complex industry understand that there is a lot going on behind the scenes that affects the ultimate outcome of the manufacturing process or service generation. Investment management is the same. Chains of Finance is part of a growing literature in the social studies of finance that highlights that investment is an interactive social process, not a cut and dried application of some algorithm, even when it is promoted as a computer-driven, machine only exercise. Please listen to my interview with one of the authors, Philip Grant, here....

Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com

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Trying to follow the key macroeconomic debates that are swirling around DC, CNBC, the WSJ and the NYT? If you are but don't want to go back to graduate school or re-open your college macroeconomics textbook, John Quiggin has a solution. His Economics in Two Lessons: Why Markets Work So Well, and Why They Can Fail So Badly (Princeton University Press, 2019) achieves several goals. First, it frames the current debates, providing a concise, well-written history of macroeconomics and the key twists and turns in economic policy that have brought us to our current state of (general) disagreement on economic policy. Second, he structures his view of macroeconomics as a rebuttal to a 1946 book by Henry Hazlitt in 1946 called Economics in One Lesson. Seventy years later, Quiggin counters Hazlitt's view that markets are "correct," in that their prices accurately reflect opportunity costs for buyers and sellers. Quiggin's second lesson highlights the externalities and factors that distort those opportunity costs and lead to suboptimal outcomes such as extended unemployment, excessive income inequality, and the seemingly intractable problem (from an economics perspective) of pollution. In the final portion of his book, Quiggin argues what policies he thinks would make markets work better by generating a more accurate understanding of opportunity costs. To some, his prescriptions will look like the program of the Left. The great irony is that his goal is to make markets function better, not rid us of them. Whether you agree with his prescriptions are not, this is a very interesting book and a great way for non-economists to get up to speed on current debates and policy issues without having to do a single test for statistical significance or worry about heteroscedasticity.

Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com

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Small is beautiful, right? Isn't that what we've all been taught? From Jeffersonian politics to the hallowed family farm, from craft breweries to tech start ups in the garage. Small business is the engine and the soul and the driver of the American system. That's the dominant narrative. And according to Robert Atkinson and Michael Lind, it is really wrong. In their new book, Big is Beautiful: Debunking the Myth of Small Business (MIT Press, 2018), the authors review the empirical evidence and conclude that large businesses create more, generate more intellectual capital, pay better, pollute less, are more diverse, and score higher on pretty much any measure of economic or employee well-being that you can come up with. It is a shocking conclusion, but one that everyone involved in the regulation of business should be aware of. (And, by the way and probably a surprise to many, small business has had its thumb on the regulatory scales for much of the republic's history.) Big is Beautiful goes against--way against--the prevailing narrative about business in this country.

Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com

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The machines have taken over.... For many operating in investment management, it can certainly seem that way: factor investing, algorithmic investing, dynamic hedging instruments, risk management derivatives driven by changes in market prices, etc. dominate much of the investment narrative. And now and again these supposedly superior investment approaches get blamed for causing big blow ups. If portfolio insurance led to a wave of computer selling in 1987, then the chaos generated by the models in 2008-2009 was incomparably larger. So say the critics. But in Financial Models and Society: Villains or Scapegoats (Elgar, 2018), Ekaterina Svetlova begs to differ. She looks at how quantitative models are actually used by investors and finds a whole space where human judgment, intuition and non-model based factors come into play as to when and how and to what degree financial models are actually implemented. This social social of finance is well known in academia; it needs to be better known among practitioners. Listen to her interview here.

Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com

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Richard Vague really really cares about private-sector debt. And he thinks you should too. In A Brief History of Doom: Two Hundred Years of Financial Crises (University of Pennsylvania Press, 2019), Vague sees the rise and fall of private sector debt as the key factor explaining the cycle of economic crises experienced by developed and major developing economies over the past two centuries. The early stages of a lending cycle look and feel good. Everyone is happy, the lenders think they are smart, the borrowers feel they have everything under control. Then the lenders and borrowers take it to another level, and then another, and then it collapses, time and time again. Where are now? The good news is that debt/GDP levels aren't too bad, but in certain sectors of the economy and certain countries, they are flashing red, brightly. Read the book to find which sectors and countries. Vague makes his data available to researchers at http://www.bankingcrisis.org.

Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com

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Regular listeners of this podcast will, no doubt, be familiar with the name of Raul Espejo, former Director of Operations of Stafford Beer’s famed Cybersyn Project under the Chilean government of Salvador Allende in the early 1970’s. This episode, the esteemed Dr. Espejo joins us in his role as co-editor of the volume, Cybernetics and Systems: Social and Business Decisions out from Routledge in 2019. By extension, this work is also a reflection of Espejo’s role as former Director-General and now President of the World Organization of Systems and Cybernetics (WOSC) as this book is, essentially, a collection of extended abstracts and mini-papers encapsulating the vast spectrum of cyber-systemic investigations on offer at that organization’s 2017 Congress in Rome focused largely on policy options across the domains of what contributor Elias G. Carayannis, extending the work of Etzkowitz and Leydesdorff, has dubbed the “quadruple helix” of innovation; namely, education, industry, government and the media. Grouping the contributions within nine thematic streams including Human Aspects of Managing Systems, Sustainability and the Anthropocene, Smartness and Big Data, and Democracy, Transparency and Social Dynamics, the 600 plus pages of this volume provide a panorama of the field of cyber-systemics composed of vivid snapshots of rigorous case studies and bold theoretical advances that will surely do much to fire the imaginations and ambitions of researchers and practitioners around the world as they develop their own boundary defying research agendas.

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Essentialism is a systematic discipline designed to support making life decisions that help you to make your highest possible contribution towards the things that really matter. In this episode, cross-posted from the podcast Psychologists Off The Clock, Dr. Yael Schonbrun interviews Greg McKeown , author of the best-selling book, Essentialism: The Disciplined Pursuit of Less. They discuss the importance of distinguishing the essential from the nonessential, how to identify what is most essential, and strategies to support the disciplined pursuit of what is essential to you.

Greg McKeown is the author of the best-selling book, Essentialism: The Disciplined Pursuit of Less. He is also afrequent contributor to Harvard Business Review, a sought after keynote speaker, a repeating guest on the Steve (Harvey) show, and his work on Essentialism is regularly written about in media (see Resources). Greg is also founder/CEO of McKeown, Inc., a strategy design center.

Dr. Yael Schonbrun is a clinical psychologist in private practice, an assistant professor at Brown University, and a co-host of the podcast Psychologists Off The Clock. 

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Silicon Valley is understood to be one of the most fast-paced regions on earth, where innovation and upheaval are part and parcel of daily life. Imagine the challenge, then, when it’s your job to document and analyze the complex, intersecting, ever-changing cultures that comprise this famous region. In 2002, Dr. Jan English-Lueck tackled that very task in her book Cultures@SiliconValley. Now, fifteen years later, she has released a new edition that traces the decade and a half since that book came out, documenting what has changed in Silicon Valley and what has remained the same. In this episode I speak with Dr. English-Lueck about the revised Cultures@SiliconValley: Second Edition (Stanford University Press, 2017) discussing the original project as well and why and how she went about updating this important work.

Carrie Lane is a Professor of American Studies at California State University, Fullerton and author of A Company of One: Insecurity, Independence, and the New World of White-Collar Unemployment (Cornell University Press, 2011). Her research concerns the changing nature of work in the contemporary U.S. She is currently writing a book on the professional organizing industry. To suggest a recent title or to contact her, please send an email to [email protected].

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You mean accounting has a history? Yes, it does, and it should matter to you, because the accounting profession, and the audit function that it serves, affects all the companies in your 401(k) program. Remember WorldCom, remember Enron? Every time a large holding of yours writes off the goodwill from a failed acquisition--there are too many examples to recite here--you've just had an accounting moment. In The Big Four: The Curious Past and Perilous Future of the Global Accounting Monopoly (Berrett-Koehler Publishers, 2018), Ian D. Gow and Stuart Kells describe the history of the auditing profession and how it has come to be concentrated in four global entities. They assess the current challenges the industry faces and where it could head to address those challenges. People in finance, business owners, and anyone with a 401(k) should find this book of interest.

Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com

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In his new book, The Fourth Age: Smart Robots, Conscious Computers, and the Future of Humanity (Simon & Schuster, 2018), futurist, technologist, and CEO of Gigaom, Byron Reese makes the case that technology has reshaped humanity just three times in history: 100,000 years ago, we harnessed fire, which led to language; 10,000 years ago, we developed agriculture, which led to cities and warfare; and 5,000 years ago, we invented the wheel and writing, which lead to the nation state. He tells us that we are now on the doorstep of a fourth change brought about by two technologies: AI and robotics. His book provides an essential background on how we got to this point, and how—rather than what—we should think about the topics we’ll soon all be facing, such as machine consciousness, automation, changes in employment, creative computers, radical life extension, artificial life, AI ethics, the future of warfare, superintelligence, and the implications of extreme prosperity.

By asking questions like “Are you a machine?” and “Could a computer feel anything?”, Reese cultivates discussion at the cutting edge in robotics and AI, and provides a framework by which we can all understand, discuss, and act on the issues of the Fourth Age and how they’ll transform humanity.

Byron Reese is the CEO and publisher of the industry-leading technology research company Gigaom, and the founder of several high-tech companies. He has spent the better part of his life exploring the interplay of technology with human history. Reese has patents, obtained and pending, in disciplines as varied as crowdsourcing, content creation, and psychographics. The websites he has launched, which cover the intersection of technology, business, science, and history, have together received over a billion visitors and he is author of the acclaimed book, Infinite Progress: How Technology and the Internet Will End Ignorance, Disease, Hunger, Poverty, and War. He joins me today to talk about his new book, The Fourth Age.

Carrie Lynn Evans is a PhD student at Université Laval in Quebec City.

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