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“Physical Fallacy”
Back to the Futures: Crashing Dirt Bikes, Chasing Cows, and Unraveling the Mystery of Commodity Futures Markets demystifies the concept of commodity markets for readers and explains their importance for the future. How much research did you undertake for this book, and how much time did it take to put it all together?
The book is the culmination of a lifetime of research on commodity futures markets. In all seriousness, I have been studying and researching commodity markets my entire adult life, starting as an undergraduate student at Iowa State University and all the way up to the present time. The actual book took about five years to write, edit, and publish.
What is a common misconception you feel people have about commodity trading?
The most common misperception is that trading in commodity futures markets by speculators is merely gambling, and unneeded gambling at that. This is a reflection of what economists call the “physical fallacy.” This is the belief that something traded must be a physical object, like a bushel of corn, in order for the trading to be socially useful. Economists have proven quite conclusively that trading in forward commitments to buy or sell physical commodities, which is what a commodity futures market is, can play an important role in a market economy by distributing price risk from those who don’t want to bear it to those that are willing to bear it.
What is one thing that you hope readers take away from Back to the Futures?
I hope that readers can take away a newfound appreciation for the importance of commodity futures markets to our modern market economy. These markets largely sit in the background of everyday life, but prices for some of the most important commodities to modern life, like corn, crude oil, and cattle are set in these poorly understood markets. This makes futures markets literally important to everyone.
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In Back to the Futures, agricultural economist Scott Irwin explains why it’s essential to understand futures markets, whether you’re talking about grain, cattle, or the largest market of them all—crude oil. These massive markets lie at the heart of our economy, affecting us all.
Irwin’s engaging storytelling style brings the madcap world of futures trading to life, drawing you in by sharing his wild, life-threatening adventures with motorcycles, snowmobiles, race cars, farm equipment, and renegade cows while growing up on an Iowa farm.
Back to the Futures will keep you riveted as he explains how to reduce risk in today’s intense arena of commodity trading. This unique book brings in other experts as well, such as Terry Duffy, CEO of the CME Group (the largest commodity trading exchange in the world), and Leo Melamed, the man who revolutionized the market with electronic trading. Together, these experts combine their knowledge and experiences to provide clarity on the following topics: Why future markets are crucial for farmers and consumers
The critical role future markets play in our financial system
The role speculators play in making these markets work
And much more
Commodity futures trading has become a vital part of doing business in America. So, get ready to learn something new–and don’t be surprised if you find yourself highly entertained along the journey!
Back to the Futures: Crashing Dirt Bikes, Chasing Cows, and Unraveling the Mystery of Commodity Futures Markets
Back to the Futures: Crashing Dirt Bikes, Chasing Cows, and Unraveling the Mystery of Commodity Futures Markets is an engaging journey through the vibrant history and intriguing practice of Futures trading, blending insight, humor, and reflection in a balanced composition. Authors Irwin and Peterson excel in demystifying the mechanics and strategies of Futures trading, intertwining humorous and poignant narratives from their early years to effectively underscore their points.
Irwin, drawing on his experiences as a farm boy and adventurer, employs tales of boldness and risk to illustrate the courage, expertise, and fortune necessary to navigate the Futures market successfully. The authors’ innovative approach to elucidating complex stock terminologies and economic theories through relatable stories and anecdotes is commendable, making Back to the Futures a compelling read for both educational and leisure purposes.
The book’s narrative is dynamic and impactful, with Irwin and Peterson creating a rhythmic flow that makes the content both accessible and emotionally resonant. While Back to the Futures stands out as an informative and entertaining resource, I feel it occasionally adopts a more narrative-driven approach at the expense of in-depth terminological clarity. This choice, particularly given Irwin’s expertise in agricultural economics, seems to prioritize readability and engagement. I believe that including a detailed glossary or appendix could further enrich the reader’s understanding and appreciation, complementing the book’s already strong narrative with essential academic rigor.
Back to the Futures imparts a sense of joy, enlightenment, and a deeper comprehension of the Futures market and the art of speculation. The book challenges the negative connotations associated with speculation, leaving readers with a newfound understanding and anticipation for a second reading. Its unique blend of personal anecdotes with complex financial concepts makes it a notable contribution to its field.
Pages: 382 | ASIN : B0BYDG6HLR
LITERARY TITAN 