Thanks to the financial crisis people are become more interested in the way markets function.
Anyone who works to help people deal with the crisis has discovered that it is not sufficient to mull over childhood memories and fantasy life. Professionals dealing with real people who have real problems in the real world has to have something more than a passing understanding about the way markets work.
To grasp this reality we need to know about the circulation of money. It is not an easy or simple topic. And yet, much of what is going on in the economic world today concerns whether the Federal Reserve and the Congress can forestall a deflationary collapse by engineering a wholesale inflation of our currency.
Understanding this reality and the way it is playing itself out in markets is essential to managing your life, your career, and your finances.
Surely, your financial adviser-- or yourself if that is your work-- has a view of the current state of the world and has worked with you to reposition your portfolio in relation to the new reality.
Goals have to be re-examined, too, but a good adviser will also work out a larger view of the markets, where they are, and where they may or may not be in the next few years.
I hesitate to write much about this topic since I am very far from being competent in it. Yet, fortune has provided us with an excellent essay by the estimable James Grant in today's "Wall Street Journal." It is well worth everyone's attention. Link here.