• Shortcuts : 'n' next unread feed - 'p' previous unread feed • Styles : 1 2

» Publishers, Monetize your RSS feeds with FeedShow:  More infos  (Show/Hide Ads)


Date: Wednesday, 30 Jul 2014 17:14

You can keep up with all of our posts by signing up for our daily e-mail. Thousands of other readers already have. Don’t miss out!

Quote of the day

Justin Fox, “(C)orporate taxes resemble Prohibition in the late 1920s: a set of laws that have lost their legitimacy, and can be flouted with little or no loss of social status.”  (HBR)

Chart of the day

TWTR 0714 624x347 Wednesday links:  losing their legitimacy

Paul Kedrosky, “Always fun watching what happens with a public equity when everyone leans wrong way. Small deltas have massive consequences.” (@pkedrosky)

Markets

The gold and silver miners have bounced. What next?  (Market Anthropology)

Traders hate the agricultural commodities.  (Short Side of Long)

China’s stock market rally is attracting some attention.  (WSJ)

Industrial stocks are falling off the table.  (Bespoke)

Strategy

Why ‘buy and hold‘ is a misnomer.  (A Wealth of Common Sense)

There’s always a market divergence to worry about.  (The Reformed Broker)

How to teach a kid to invest.  (Mebane Faber)

Companies

Twitter ($TWTR) earnings surprised to the upside on strong user growth.  (TechCrunch, Quartz, Pando Daily, Aaron Pressman, Digits)

How big is the Apple ($AAPL) ecosystem?  (Asymco)

Is AMC Networks ($AMCX) getting overlooked in all this cable merger talk?  (Quartz)

Amazon

Does Amazon ($AMZN) have a AWS problem?  (Feld Report)

Amazon is investing big time in India.  (Time)

Amazon’s business strategy is increasingly like a Rube Goldberg machine.  (stratechery)

ETFs

Investors can’t get enough sector ETFs.  (FT)

Investors take heed: unconstrained bond funds really do follow a range of strategies.  (MPI)

Not a huge shock but money is coming out money market funds into equities.  (FT)

Quality-mix ETFs look to combine quality, value and low vol all in one pakcage.  (Morningstar)

Economy

The US economy bounced back in Q2 at a 4.0% rate.  (Calculated Risk, Capital Spectator)

Is the economic recovery actually now trickling down to the middle class?  (The Reformed Broker also Dr. Ed’s Blog)

US housing data this month has been not so hot.  (Business Insider)

Why the Fed doesn’t have to “unwind” QE.  (Pragmatic Capitalism)

Earlier on Abnormal Returns

What you might have missed in our Tuesday linkfest.  (Abnormal Returns)

Mixed media

Snapchat is poised for a huge funding round.  (Bloomberg)

Howard Lindzon talks real estate the Zillow ($Z)/Trulia ($TRLA) deal.  (Soundcloud)

Just in case you didn’t have enough to worry about already…solar storms are a real threat. (CNBC, Businessweek)

You can support Abnormal Returns by visiting Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Wednesday links:  losing their legitimacy

The post Wednesday links: losing their legitimacy appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Tuesday, 29 Jul 2014 14:50

This is an early edition of the linkfest. Check back in tomorrow for more link goodness.

Quote of the day

Adam Grimes, “You do not want to be reinventing the wheel with every trade, but, rather, you want a fixed, disciplined process, and a trading plan that clearly lays out what you will and what you will not do in the market.”  (Adam Grimes)

Chart of the day

KOL 0714 554x420 Tuesday links:  reinventing the wheel

Coal stocks look to be making a bottom.  (All Star Charts)

Markets

The ERP is not stable. (Andrew Smithers)

Farmland investing is going to get commoditized.  (AlphaBaskets)

Why does everyone focus so much on the US stock market?  (Patrick O’Shaughnessy)

Strategy

Stocks are not bonds, and vice versa.  (Blackrock Blog)

Avoid those who peddle “can’t lose arguments.”  (Barry Ritholtz)

Why you need to have an investment plan.  (Irrelevant Investor)

Companies

IBM ($IBM) gets no respect.  (Simon Lack)

Zillow ($Z) has become an integral part of the real estate economy (and more).  (Slate)

Airline stocks are crushing it.  (Bloomberg, Washington Post)

HBO is being used as the gateway drug to cable TV.  (Recode also WSJ)

Does Herbalife ($HLF) now have a growth problem?  (Herb Greenberg)

Finance

Surprisingly block traders are holding their own against computerized systems.  (WSJ)

Guess who is pushing tax inversions? Wall Street.  (Dealbook)

Beware companies holding their annual shareholder meetings in faraway places.  (Conversable Economist)

Morgan Stanley ($MS) is raising the pay of junior bankers.  (Bloomberg)

ETFs

A broad range of ETFs including the First Trust Dorsey Wright Focus 5 ($FV) are attracting assets.  (ETF)

Global

FlipKart, the Amazon of India, just raised $1 billion in capital.  (Bloomberg, Quartz)

The Yukos decision is yet another blow to the reputation for Russia among global investors.  (Quartz)

Ten year German Bunds now yield a tad more than 1.0%.  (FT)

Economy

On the risk of a Q2 GDP disappointment.  (Humble Student also Dr. Ed’s Blog)

Home price gains are slowing down.  (Real Time Economics)

Earlier on Abnormal Returns

What you might have missed in our Monday linkfest.  (Abnormal Returns)

Mixed media

Brenda Jubin, “The Nature of Value is a well-reasoned, thought-provoking book that belongs in the library of every investor, professional and retail, value and growth.”  (Reading the Markets)

You can now watch CNBC on your Apple TV.  (TechCrunch)

ThinkNum raises VC to build out collaborative spreadsheets.  (Dealbook)

Howard Lindzon talks with Jack Schwager and Emanuel Balarie about Fundseeder. (Social Leverage)

You can support Abnormal Returns by visiting Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Tuesday links:  reinventing the wheel

The post Tuesday links: reinventing the wheel appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Monday, 28 Jul 2014 16:30

Quote of the day

James Surowiecki, “It’s easy to be skeptical of the mushy rhetoric surrounding B corps. Yet the desire to balance profit and purpose is arguably a return to the model that many American companies once followed. ”  (New Yorker)

Chart of the day

LOCO 0714 624x344 Monday links:  mushy rhetoric

Quite a debut for El Pollo Loco ($LOCO).  (Business Insider)

Markets

Small caps have been underperforming around the world.  (FT Alphaville)

On the prospects for a growth scare.  (Humble Student)

The Nasdaq has been above its 200 day moving average for a LONG time.  (Price Action Lab)

Putting the effect of geopolitical headlines into perspective.  (FT Alphaville)

Strategy

Will rising interest rates really hurt the stock market?  (Barry Ritholtz)

Why you can safely ignore Shiller’s CAPE ratio.  (Anatole Kaletsky)

Do simple moving average rules add value?  (Alpha Architect)

Good luck short-term traders, taxes are going to get you.  (Barry Ritholtz)

Accomplished performers are driven to master their domain.  (TraderFeed)

M&A

Zillow ($Z) is buying Trulia ($TRLA).  (Dealbook, Bloomberg)

Dollar Tree ($DLTR) to buy Family Dollar ($FDO).  (Dealbook, Bloomberg)

The pharmaceutical industry is beset with M&A.  (WSJ, Dealbook)

Media

Can Reddit monetize its users without wrecking things in the process?  (NYTimes)

Apple ($AAPL) is buying Swell to advance its podcast capabilities.  (Recode, TechCrunch)

Another example of YouTube providing a platform for niche content providers.  (NYTimes)

IPOs

This week is set to be the busiest since 2000 for IPOs.  (MoneyBeat)

Let the airline IPOs begin!  (Fast Company)Is the El Pollo Loco IPO a sign of more consumer-oriented IPOs?  (MoneyBeat)

Fund managers

Mutual fund giant the Capital Group is looking to offer non-transparent ETFs.  (ETF)

We won’t know how the new money market mutual fund rules work until the next crisis.  (Chuck Jaffe)

Are asset managers systematically important? The pros and cons.  (FT Alphaville)

How Charles Schwab ($SCHW) could succeed in the robo-advisor space.  (RIABiz)

Global

Russia owes former Yukos holders $50 billion.  (WSJ, FT, Bloomberg)

Some not so great signs from Europe.  (Dr. Ed’s Blog)

A measure of rising Chinese financial risk.  (Econbrowser)

Economy

Three reasons Janet Yellen remains dovish.  (Sober Look)

An FOMC preview.  (Calculated Risk, FT)

What happens to population patterns if the drought continues unabated in the West?  (Business Insider)

Entering the work force in a recession can set you back for awhile.  (Bloomberg)

Earlier on Abnormal Returns

What you might have missed in our Sunday linkfest.  (Abnormal Returns)

Mixed media

Why you should read Peter Thiel’s forthcoming Zero to One instead of Thomas Piketty’s Capital in the Twenty First Century.  (Falkenblog)

Why people believe hedge fund managers.  (Medium)

Why it is so hard to go out on top.  (Altucher Confidential)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Monday links:  mushy rhetoric

The post Monday links: mushy rhetoric appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Sunday, 27 Jul 2014 12:05

Quote of the day

Ben Carlson, “Admitting you don’t have it all figured out (and never will) can be an enlightening event for an investor because it frees you up to focus only on what is within your control and ignore those areas which is out of your control.”  (A Wealth of Common Sense)

Strategy

Four contrarian trade suggestions.  (Humble Student)

Should the Fed be giving investment advice?  (Musings on Markets)

Not all fiduciaries put their clients’ interests first: the case of “termination fees.”  (Jason Zweig)

A byproduct of any bull market is complacency.  (Brian Portnoy)

The myth of the passive investor.  (Alliance Bernstein)

Trading

Why traders should manage their energy not necessarily their time.  (TraderFeed)

Do you have the “rage to master” trading?  (Adam Grimes)

How emotional temperament affects trading success.  (TraderFeed)

Books

Apple ($AAPL) has acquired BookLamp, the “Pandora for books.”  (TechCrunch, GigaOM)

Why writers are leaving the big publishers for self-publishing: money.  (Business Insider)

Companies

Verizon ($VZ) doesn’t want power wireless users.  (TechCrunch)

What happens to realtors if Zillow ($Z) and Trulia ($TRLA) merge?  (WSJ)

Finance

Tax inversions are the hot new special situation for investors.  (WSJ , ibid)

Charles Schwab ($SCHW) could be getting into the robo-advisor space.  (InvestmentNews)

Economy

America needs truck drivers.  (Business Insider)

The fourteen most important charts from the past week on the global economy.  (Quartz)

A look back at the economic week that was.  (Bonddad Blog, Big Picture)

The economic schedule for the coming week.  (Calculated Risk, Bespoke)

Earlier on Abnormal Returns

Top clicks this week on the site.  (Abnormal Returns)

What you might have missed in our Saturday linkfest.  (Abnormal Returns)

Mixed media

The Logitech Ultrathin Keyboard turns the Apple iPad into the “perfect writing machine.”  (Medium)

Elon Musk talking with Stephen Colbert is a must-see for fanboys.  (Business Insider)

Why you should aspire to ‘time affluence.’  (Fast Company)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Sunday links:  an enlightening event

The post Sunday links: an enlightening event appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Sunday, 27 Jul 2014 11:19

Thanks for checking in with us this weekend.  Here are the items our readers clicked most frequently on Abnormal Returns for the week ended Saturday, July 26th, 2014. The description reads as it does in the relevant linkfest:

  1. Three reasons why it is a great time to be an investor.  (Jonathan Clements)
  2. How to reduce portfolio risk without going to cash.  (Pension Partners)
  3. Why the narrative about emerging markets is like to shift.  (The Irrelevant Investor)
  4. Jeremy Grantham is looking for an M&A led market blow off.  (The Reformed Broker)
  5. How to hack air travel.  (Medium via kottke)
  6. As the market has risen bulls have headed for the door.  (Bespoke)
  7. Why you should try and automate your investing as much as possible.  (Patrick O’Shaughnessy)
  8. A look at some really long term sector charts.  (Humble Student)
  9. A deep dive into a model that helps explain gold prices.  (Crossing Wall Street)
  10. How experts get better: they tune out the inessential.  (TraderFeed)

Here is what else you may have missed on the site this week:

  1. An excerpt on bond ETFs from William Bernstein’s Rational Expectations: Asset Allocation for Investing Adults.  (Abnormal Returns)
  2. Six Essential Principles from Pragmatic Capitalism by Cullen Roche.  (Abnormal Returns)

You can support Abnormal Returns by visiting Amazon. You can also follow us on StockTwits and Twitter.

www.FeedBurner.com) Top clicks this week on Abnormal Returns

The post Top clicks this week on Abnormal Returns appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Saturday, 26 Jul 2014 12:28

The weekend is a great time to catch up on some posts that were either too long or simply didn’t fit in during the week. Hope you enjoy!

Investing

Does the small cap premium exist?  (Monevator)

Amateurs and professionals think about investment risk very differently.  (Blackrock Blog)

Investing wisdom from The Wire.  (Clear Eyes Investing)

Buy and hold

Has the Fed doomed buy-and-hold?  (Pension Partners)

Why buy-and-hold investing is impossible.  (Chuck Jaffe)

Habits

On the high cost of waiting to invest.  (Alliance Bernstein)

Why you should make investing a habit, early.  (Joe Manuseto, Patrick O’Shaughnessy)

Personal finance

A house is a horrible investment.  (Brian Lund)

Is a target date fund right for you?  (Pete the Planner)

The financial crisis turned off a whole generation from the stock market.  (Michael Santoli)

Financial literacy

How financially literate are individual US investors?  (The Mathematical Investor)

Basic questions about retirement investing remained unanswered for a large chunk of Americans.  (A Wealth of Common Sense)

Economics

Eight reasons why America isn’t done yet.  (Conor Sen)

Can economics make for good fiction? A review of Marshall Jevon’s The Mystery of the Invisible Hand.  (Reading the Markets)

Business

Why can’t the pharmaceutical industry innovate any more?  (NYTimes)

Do we really want more power in the hands of media moguls like Rupert Murdoch?  (FT)

Startups

On the importance of the pro-rata opportunity.   (A VC)

Should we care that companies are staying private longer?  (Pando Daily)

Media coverage to the contrary, founders alone don’t build a company.  (TechCrunch)

Science

The science behind why men find women in high heels more attractive.  (Scientific American)

Why do men prefer nice women?  (Science Blog)

Health

There isn’t much evidence on the use of probiotics.  (Well)

Scientists are trying to crack the code on when puberty hits.  (The Verge)

Why fruits and vegetables are good for us: they stress our systems.  (Nautilus)

Sleep

Why seven hours a night might be the optimal amount of sleep.  (WSJ also Wired)

Hold on..a blanket recommendation for the amount of sleep doesn’t make sense.  (Vox)

Food

Inside Sun Noodle the secret weapon of America’s best ramen noodle shops.  (Eater via @longreads)

How America’s breakfast habits, i.e. protein vs. carbs, are changing.  (WSJ)

Midwest grain is feeding cars and cows instead of people.” (Nature)

America’s milk production is in secular decline.  (WSJ)

Why is America exporting our best salmon?  (Quartz)

Beer

Can an American craft brewer shake up the German beer market?  (Economist)

How Jimmy Carter helped launch the craft beer revolution in America.  (Daily Finance)

Sports

How much did the Boston Red Sox leave on the table by not hiring Billy Beane?  (FiveThirtyEight)

On the rise or basketball in India.  (The Atlantic)

How our arms help us run.  (Well)

Entertainment

Taking stock of Tom Petty’s 40 year career in music.  (Grantland)

Five ways television has changed forever.  (Quartz)

A better way to search your Netflix ($NFLX) queue.  (A Better Queue via TechCrunch)

The 50 best documentaries on Netflix.  (Paste)

Why most TV shows peak by their third season.  (Quartz)

Earlier on Abnormal Returns

What you might have missed in our Friday linkfest.  (Abnormal Returns)

Mixed media

A dozen things learned from Andy Rachleff.  (25iq)

On the myth of the lone genius.  (NYTimes)

Don’t send your kids to the Ivy League unless you want them to become “entitled sh*ts.”  (New Republic)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Saturday links:  staying private longer

The post Saturday links: staying private longer appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Friday, 25 Jul 2014 16:57

Quote of the day

Brett Steenbarger, “Some traders are attracted to markets as a way to exercise their strengths and some are attracted to markets to compensate for their weaknesses.” (TraderFeed)

Chart of the day

FB 0714 624x351 Friday links:  exercising your strengths

Facebook ($FB) is now bigger than Coca-Cola ($KO) and Disney ($DIS).  (Quartz)

Markets

How much do earnings need to grow to make stocks cheap?  (Scott Krisiloff)

Small cap relative performance can run for years.  (A Wealth of Common Sense)

Why the outcome of any single trade doesn’t matter.  (Adam Grimes)

Mark Cuban won’t own stock in companies doing tax inversions.  (MoneyBeat, Business Insider)

The most important charts in the world.  (Business Insider)

Companies

Burger King ($BKW) is run by a cadre of young execs.  (Businessweek)

What’s Apple ($AAPL) worth?  (Asymco)

Just how big is the effective size of the mobile market?  (a16z)

Nobody wants to compete with Google ($GOOG) in search.  (Quartz)

Instead of spending money on buybacks maybe the big airlines can get wi-fi to work on all its planes?  (WSJ)

Finance

A nice primer on the new money market fund rules.  (Rekenthaler Report)

The middle class can’t afford life insurance.  (WSJ)

Funds

Closed-end funds are cutting their distributions.  (Focus on Funds)

Retail investors are fleeing high yield bond funds.  (WSJ, FT)

Global

The UK economic recovery in 13 charts.  (FT Alphaville)

How can emerging market growth be so weak while credit spreads so tight? (FT Alphaville)

Economy

Chemical activity shows continued growth.  (Calculated Risk)

The number of US factories have stopped going down.  (Real Time Economics)

Housing is a risk factor for the US economy.  (Capital Spectator)

Corn farmers are facing a down year.  (WSJ)

Earlier on Abnormal Returns

Six Essential Principles from Pragmatic Capitalism by Cullen Roche.  (Abnormal Returns)

What you might have missed in our Thursday linkfest.  (Abnormal Returns)

Mixed media

Yahoo Finance and Seeking Alpha are parting ways.  (Street Insider)

Yahoo Finance launches its Yahoo Finance Contributors network.  (TheStreet)

RIP, Ace Greenberg.  (Business Insider)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Friday links:  exercising your strengths

The post Friday links: exercising your strengths appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Thursday, 24 Jul 2014 16:42

Quote of the day

Chris Arnade, “Rules are made to be gamed, and games are played to be won. That is at the core of the culture of Wall Street. If you don’t understand that, you don’t understand Wall Street.”  (Guardian)

Chart of the day

TNX 0714 461x420 Thursday links:  understanding Wall Street

Treasury yields have a hard time moving higher.  (Andrew Thrasher)

Video of the day

Michael Mauboussin talks about The Success Equation: Untangling Skill and Luck in Business, Sports and Investing with the folks at Google.  (YouTube via @pkedrosky)

Gold

On the relationship between long term Treasury yields and gold.  (Market Anthropology)

A deep dive into a model that helps explain gold prices.  (Crossing Wall Street)

Markets

Is China’s stock market ready to breakout?  (Kimble Charting)

German bond yields are nearing Japan territory.  (MoneyBeat)

As the market has risen bulls have headed for the door.  (Bespoke)

Why volatility could stay low for awhile.  (See It Market)

Strategy

William Bernstein in Rational Expectations: Asset Allocation for Investing Adults has become warier of “investing science.” (Rekenthaler Report)

The performance chase often ends in tears.  (The Reformed Broker)

Why you should try and automate your investing as much as possible.  (Patrick O’Shaughnessy)

There are a number of similarities between flying and investing.  (The Flying Investor)

Momentum

On the value of combining different factors.  (Humble Student)

Some momentum investing reads.  (Capital Spectator)

Companies

Facebook ($FB) is becoming an mobile earnings machine.  (WSJ)

Airline industry profits are attracting a new raft of startup competitors.  (WSJ)

Hedge funds

Why investors are still willing to pay up for “alpha.”  (the research puzzle also Barry Ritholtz)

Institutions are pouring money into hedge funds, except for Calpers.  (CNBC, WSJ)

Finance

High frequency trader Jump Trading keeps a pretty low profile.  (Bloomberg)

Legislation could retroactively punish tax inversion deals.  (Dealbook)

What will asset managers need to do to comply with the new money market mutual fund rules?  (Dealbook)

Buyout firms are trying to roll up the auto collision repair industry.  (WSJ)

Now the Feds are getting into the farmland investment game.  (NYTimes)

Economy

Weekly initial unemployment claims are at eight-year lows.  (Calculated Risk, Bespoke, Capital Spectator)

Why the income for recent college grads have stagnated.  (The Atlantic)

The recovery is starting to reach the long-term unemployed.  (Wonkblog)

Earlier on Abnormal Returns

Six Essential Principles from Pragmatic Capitalism by Cullen Roche.  (Abnormal Returns)

What you might have missed in our Wednesday linkfest.  (Abnormal Returns)

Mixed media

Are all speed limits too low?   (Priceonomics Blog)

We are not ready for a solar storm.  (WashingtonPost)

A year in how Google Chromecast has changed our idea of television.  (GigaOM)

Butter prices are at a 16-year high.  (Bloomberg)

Millennials want no part of golf.  (WSJ)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Thursday links:  understanding Wall Street

The post Thursday links: understanding Wall Street appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Thursday, 24 Jul 2014 14:00

Cullen Roche at Pragmatic Capitalism has been a fixture on the financial blogging scene for some time now. He was named by Josh Brown as one of the “five best financial bloggers.” Not surprisingly book publishers came calling and he recently published a fine book: Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance.*

Cullen has been out talking about the book including a Q&A over at The Reformed Broker and a Trendfollowing Podcast with Michael Covel. The book was also positively reviewed over at A Wealth of Common Sense. Long-time readers of Pragmatic Capitalism will find some familiar topics in the book including a discussion of the concept of “monetary realism.” In addition Cullen dives deeper into some topics around building a portfolio and downright philosophical in discussing each our roles (and responsibilities) in our current economy.

The following is an excerpt from Chapter 9 of Cullen Roche’s new book Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance from Palgrave Macmillan. Copyright (c) 2014 by Cullen Roche.

_______________________________

Six Essential Principles from Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance by Cullen Roche

1)    The big picture matters more than ever. As the world’s population expands, technological advances grow and the emerging market’s middle class demands a higher living standard, the global economy will become an increasingly interconnected and tiny place. This will force changes in the use of global resources, the way governments engage in the economy, and a shift in the way we all interact and engage in the economy and in the markets.

2)    The best investment you’ll ever make is likely to be in yourself. The best investments do not always involve the purchase of a claim on someone else’s business. Instead the best return on investment you are likely to generate is an investment in yourself and improving the way you can provide value to other economic participants, thereby maximizing the income stream that drives your total portfolio.

3)    We are often our own worst monetary enemy. Although we created money to simplify our economic lives, we are ill equipped to handle many of the behavioral problems that come with having a monetary system. Our inherent biases and deficiencies will often make us our own worst enemies. Identifying potential errors and flaws is the best way to protect yourself from yourself.

4)    We have a fiat monetary system, not a hard money or barter-based system. Analyzing and understanding the modern monetary system means we must understand the system we have and not the system we want. We do not reside in a commodity-based monetary system or a barter system. Therefore when we analyze and understand the system we must always approach it from the reality that we reside in a fiat monetary system that is credit based. Any discussions about barter or commodity money are largely inapplicable to our modern monetary reality. If we’re going to resolve the issues we have with our current system, we must understand it for what it is and not what we want it to be.

5)    Money is not the same as “true wealth.” Money is the medium of exchange. It is the thing that gives us access to the show that is the economy. Mistaking money for wealth is like mistaking the theater ticket for the performance. The reality is that the ticket is the means to the end. For most of us true wealth includes things like shelter, food, water, security, companionship, family, and things that money may or may not give you access to.

6)    Good capitalists serve themselves best by serving others. The capitalist system is most efficient and productive when its users are providing goods and services that enhance the lives of other participants within this system. The private, profit-motivated, and competitive nature of the capitalist system is operating best when its users understand that good capitalists serve themselves best by serving others.

_______________________________

You can read more by Cullen Roche at Pragmatic Capitalism or purchase the book at Amazon.

*I received a review copy of the book from the publisher Palgrave Macmillan.

www.FeedBurner.com) 6 Essential Principles from Pragmatic Capitalism by Cullen Roche

The post 6 Essential Principles from Pragmatic Capitalism by Cullen Roche appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "Book Reviews"
Comments Send by mail Print  Save  Delicious 
Date: Wednesday, 23 Jul 2014 16:51

You can keep up with all of our posts by signing up for our daily e-mail. Thousands of other readers already have. Don’t miss out!

Quote of the day

Benedict Evans, “(S)martphones don’t just increase the size of the internet by 2x or 3x, but more like 5x or 10x. It’s not just how many devices, but how different those devices are, that has the multiplier effect.”  (Benedict Evans)

Chart of the day

iPhone 0714 457x420 Wednesday links:  the multiplier effect

If the Apple iPhone business were a standalone company… (Slate)

Markets

Why the narrative about emerging markets is like to shift.  (The Irrelevant Investor)

A better measure of bond market sentiment.  (Humble Student)

Beef prices are at all-time highs.  (Bloomberg)

Strategy

How experts get better: they tune out the inessential.  (TraderFeed)

Market inefficiencies are interesting only to the degree they can be exploited.  (A Wealth of Common Sense)

On the return premium to illiquid stocks.  (John Authers)

How would the Yale endowment invest if it were taxable?  (SSRN via @quantivity)

Can individual investors time market bubbles? Some evidence says yes.  (SSRN via The Whole Street)

Companies

Apple ($AAPL) earnings were driven by strong iPhone and weak iPad sales.  (Quartz, TechCrunch, Vox, Business Insider)

The reviews for the Amazon Fire phone are rolling in and are mixed.  (NYTimes, WSJ, Fast Company, The Verge, TechCrunch)

More 21st Century Fox ($FOXA) with Time Warner ($TWX) scuttlebut.  (Bloomberg, WSJ)

Putting into perspective the Bill Ackman-Herbalife ($HLF) presentation.  (Herb Greenberg)

Finance

Stephen Davidoff Solomon, “In other words, today’s outsize mergers are really about power.”  (Dealbook)

Money market mutual funds finally see some fallout from the financial crisis.  (Barry Ritholtz)

Big banks are firing traders and hiring lawyers.  (Quartz)

ETFs

Many ETFs don’t sell themselves.  (FT)

When two ETFs go head-to-head, investors often win.  (ETF)

Global

Russia’s stock market is quite a drag on the BRICs.  (Dr. Ed’s Blog)

Economy

Seven optimistic charts about the American economy.  (Quartz)

Earlier on Abnormal Returns

An excerpt on bond ETFs from William Bernstein’s Rational Expectations: Asset Allocation for Investing Adults.  (Abnormal Returns)

What you might have missed in our Tuesday linkfest.  (Abnormal Returns)

Mixed media

Why a one-size-fits-all work schedule is a recipe for conflict.  (Wonkblog)

Why intuition is difficult to interpret.  (Jason Voss)

How to hack air travel.  (Medium via kottke)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Wednesday links:  the multiplier effect

The post Wednesday links: the multiplier effect appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Tuesday, 22 Jul 2014 16:11

Quote of the day

Carl Richards, “Knowledge alone isn’t enough. Even though we know it’s a bad idea to buy high and sell low, spend more than we earn, or invest in only one stock, we still repeat these mistakes.”  (Bucks Blog)

Chart of the day

FBSPY 0714 624x351 Tuesday links:  knowledge alone

Facebook ($FB) has been the best performing S&P 500 stock over the past twelve months.  (Quartz)

Markets

Why Treasury yields can’t catch a bid.  (Capital Spectator)

How to play the large cap-small cap spread.  (Dynamic Hedge)

Checking in on some market breadth measures.  (Short Side of Long)

Strategy

How to reduce portfolio risk without going to cash.  (Pension Partners)

What traders have in common with climate change deniers.  (The Irrelevant Investor)

Value is at best a nebulous concept.  (Pragmatic Capitalism, ibid)

Why you can’t attach too much import to any single trade outcome.  (Adam Grimes)

Companies

Netflix ($NFLX) now has in excess of $50 million subscribers.  (TechCrunch, Buzzfeed Business, Time)

Why Amazon Prime is so important to Amazon’s ($AMZN) future.  (Quartz)

America loves Chipotle ($CMG). Period.  (Wonkblog also Business Insider)

Finance

Institutional investors own less than 1% of global farmland. You do the math.  (Dealbook)

Tough times for global macro hedge fund managers.  (WSJ)

Why boards of directors don’t typically talk to shareholders.  (Dealbook)

Big companies really want to get pensions off of their balance sheets.  (Wonkblog)

Loans

Junk-rated loans are getting even junkier.  (Bloomberg)

While banks report the lowest loan losses in eight years.  (FT)

ETFs

Investors are fleeing core bond funds for more exotic fare.  (Morningstar)

How to avoid four common ETF trading errors.  (ETF)

Global

Russian stock weakness is all the more notable because the emerging markets are rising.  (Macro Man)

Low US corn prices have global effects.  (Globe and Mail)

Economy

Why now is the time for business to really begin spending again.  (The Upshot)

Millennials could use a good dose of inflation.  (Money)

Food prices are just not rising all that much.  (Pragmatic Capitalism)

Why consumers tend to misjudge inflation.  (Econbrowser)

Earlier on Abnormal Returns

An excerpt on bond ETFs from William Bernstein’s Rational Expectations: Asset Allocation for Investing Adults.  (Abnormal Returns)

What you might have missed in our Monday linkfest.  (Abnormal Returns)

Mixed media

Four ways to rediscover your motivation.  (Fast Company)

The Swedes burn garbage for energy. Why can’t we?  (Daniel Gross)

Adam Rogers’ new book Proof: The Science of Booze is a “lively, new survey” of the world of alcohol.  (NYTimes)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Tuesday links:  knowledge alone

The post Tuesday links: knowledge alone appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Tuesday, 22 Jul 2014 02:16

I, like many in finance, am a big fan of William Bernstein’s prodigious output of books on investing (and economic history). For example, I mentioned a key insight of his on the changing nature of asset correlations in an earlier blog post. More recently Bernstein wrote a short (and nearly free) primer on investing for Millenials, If You Can: How Millennials Can Get Rich Slowly, who are likely in need of help as they get their investing journey underway.

In his most recent book, Rational Expectations: Asset Allocation for Investing Adults, Bernstein takes a more technical (and mathematical) look at the challenges of asset allocation today. See Brenda Jubin at Reading the Markets for a favorable review of Rational Expectations. In addition, Bernstein also participated in a Q&A with Phil DeMuth over at Forbes. What is great about Bernstein is that he does temper his views on fund industry. In this excerpt from Chapter 6 he asks whether individual investors need to bother at all with bond ETFs. That is not so great news to the ETF industry which has attracted some $276 billion in assets to bond ETFs as of May 2014.

The following is excerpted with permission of William Bernstein from Rational Expectations: Asset Allocation for Investing Adults. Copyright (c) 2014 by William Bernstein.

_______________________________

From Chapter 6: To ETF or Not to ETF

by William Bernstein

A persistent criticism levied against my books is that they’re “outdated” because I ignore ETFs. Guilty as charged: I do much ignore them, but not because there’s anything wrong with the ETF wrapper. Like open-end funds, there are good ones and there are bad ones. It’s just that a wrapper is, well, just that. As with most products, the wrapping doesn’t make a difference to the intelligent consumer. It’s what’s inside that counts.

I’ll take that one step further. Anyone who tells you that there is something magical about ETFs that makes them significantly better than open-end funds in the same asset class is blowing a large amount of an aerosolized sooty particulate cloud. In most cases, whether you use an ETF or open-end fund makes exactly zero difference. Consider this: Over the objections of founder John Bogle, Vanguard now offers an ETF class of virtually all of its open-end index funds. These ETFs carry the same expense ratio as the Admiral class mutual funds, invest in the same underlying pool of assets, have the same tax efficiency, and, therefore, have nearly identical returns in almost all cases. It cannot be any other way.

There are certain circumstances where the chosen wrapper does make a difference, the most important area being bonds. I highly recommend that you avoid all ETF bond funds. To understand why, I’ll need to explain some of the trading mechanics involved. An ETF, unlike an open-end fund, trades throughout the day at a discount or premium relative to the net asset value (NAV) of the underlying shares. In most cases, the spread between the two is minimal because shares are both created and liquidated by independent agents: “authorized participants” (AP) who buy up the securities underlying the funds and bundle them into ETF shares that are then delivered to the fund company. The same process also works in reverse to liquidate ETF shares. Were a significant spread to open up between the market price and NAV, the AP, in theory, should simply arbitrage that away at a profit.

This mechanism works well with stocks, which are highly liquid, but not with bonds, which are not. There is, for example, only one commonly traded class of Ford Motor Company stock. By contrast, Ford has a range of bonds of varying issue dates, coupons, and maturities. Since there are so many more individual bonds than stocks, the bonds can be highly illiquid. During a financial disturbance, when liquidity becomes even thinner and most corporate bonds trade only “by appointment,” the AP mechanism fails, often at considerable disadvantage to the shareholder. The open-end fund holder, who can always buy and sell at the 4 p.m. (eastern standard time) NAV, has no such problem.

For the lion’s share of your fixed-income assets, the entire mutual fund structure is, in fact, unnecessary. To repeat this book’s opening mantra: there are risky assets, and there are riskless ones, and the two play very different roles. Keep the two as separate as possible and make the risky assets as risky as you like. Critically, your riskless assets should retain their value in a crisis. Corporate bonds, in particular, have a modest amount of stock-like behavior and can see price falls independent of the rise or fall in overall interest rates.

Municipal bonds can also behave this way, and if you’re depending on either corporates or munis for liquidity during a crisis—precisely when you’re likely to want or need it the most—you may have to take a substantial haircut to realize it. Tax-sheltered investors should keep almost all of their fixed-income assets in government-guaranteed securities: Treasury bills and notes and CDs. And while taxable investors should own at least some municipal bonds, they should still hold a fair dollop of Treasuries and CDs, as well. The main point here is that you don’t need or want to own a mutual fund for Treasuries, and it’s neither desirable nor available for CDs.

When purchasing CDs, you will need to keep an eye on the FDIC’s insured limit of $250,000 per person per institution (though a good bank manager can get fairly creative in extending this limit by varying ownership and beneficiary designations). They can also be bought from a brokerage account, which has the advantage of convenience and immediate access, especially at maturity, when they simply roll into the cash/money-market balance. On the other hand, CDs sold by a brokerage can impose a haircut of principal if they are sold before maturity, whereas usually only a limited interest penalty is incurred when you redeem before maturity at the issuing bank. If you’re especially clever and aggressive, it is often better to buy a higher-coupon, longer-maturity CD directly from the bank. If sold before maturity, the extra coupon will usually more than make up for the interest penalty. Don’t try this at a brokerage.

Unless your account size is tiny, it makes no sense to own a Treasury or government-bond fund, since you can buy these securities at auction and hold them at no cost. The same goes double for TIPS, the main purpose of which is to pay for future real living expenses. You can, with a little effort, tailor a ladder to do so with the proceeds as they mature. If, on the other hand, you hold a TIPS fund, not only do you pay unnecessary fund fees, but there will likely be periods when you will be forced to sell these securities at disadvantageous prices, as happened to many investors in 2008–2009. Much as I love Vanguard’s low fees, there’s almost no reason to pay them even a penny for their TIPS and government-bond funds. Except for the smallest of portfolios, the same is largely true for bond index funds. Their largest holdings are government securities, but they also mix in a fair amount of riskier (i.e., stock-like) corporate bonds of lower quality.

The only bond funds you should own are open-end municipal and corporate bond funds (to the extent that you do own these two asset classes). The reason for this is simple. Without a great deal of effort and expense, the individual cannot put together a well-diversified low-expense mix of municipal or corporate securities. With munis, the choice is clear: Vanguard offers a wide variety of national and state-specific mutual funds.

Corporate bond funds are curiously problematic. For many years, Vanguard maintained a “corporate bond fund” series, which then inexplicably changed both its name (to the “investment grade” appellation) and its mandate, which was broadened to include government as well as asset-backed (credit card and car loans) and mortgage-backed securities. Although these funds have good long- term records, they proved especially vexing during the Global Financial Crisis—a classic case of “bad returns in bad times.” In 2008, the Intermediate Investment Grade Bond Fund, for example, lost 6.06%, versus a loss of 2.76% for the equivalent Barclays Intermediate Credit (corporate) Index, a remarkable showing considering that the fund held a significant amount of government bonds, which did well in the crisis. To be frank, I simply do not trust the management of this fund series. Even more remarkable, Vanguard has recently brought out, hooray, a series of corporate- bond index funds. Unfortunately, the intermediate- and long-term open-end versions of these funds come with purchase fees (0.25% and 1.00%, respectively). Only the short-term version Admiral Class shares come with no fee. (All 3 funds come as fee-less ETFs, but, as I’ve explained above, I do not recommend bond ETFs.)

A reasonable fixed-income allocation for a largely sheltered portfolio might be equal amounts of CDs and Treasury bills or notes. A largely taxable portfolio might be equal parts munis, CDs, and Treasuries.

_______________________________

You can read more by William Bernstein at Efficient Frontier or see a more complete list of his books at Amazon.

www.FeedBurner.com) To bond ETF or not: an excerpt from Rational Expectations by William Bernstein

The post To bond ETF or not: an excerpt from Rational Expectations by William Bernstein appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "Exchange Traded Funds, Fixed Income"
Comments Send by mail Print  Save  Delicious 
Date: Monday, 21 Jul 2014 16:54

Quote of the day

Dan Greenhaus, “Valuations are always excessive for small-caps and biotechs, they are never supposed to be cheap…There is an irony in the Fed focusing on valuations for biotechs given that they always trade at a premium to the broad market as these companies have high growth prospects.”  (FT)

Chart of the day

XLFSPY 0714 Monday links:  excessive valuations

The yield curve has been flattening all year.  (Andrew Thrasher also Alpha Now)

Markets

The equal-weighted S&P 500 is starting to lag.  (Focus on Funds also TRB)

A look at some really long term sector charts.  (Humble Student)

Tobias Carlisle, “The Shiller PE is not a particularly useful timing mechanism.”  (Greenbackd)

Strategy

False narratives are the bane of investor seeking wisdom.  (The Psy-Fi Blog)

Lessons learned from Leon Cooperman that doesn’t include specific stock picks.  (A Wealth of Common Sense also TRB)

Does risk-adjusted time series momentum work better?  (SSRN)

Barry Ritholtz talks with Rob Arnott of Research Affiliates.  (Bloomberg View)

Companies

Trying to make sense of today’s Microsoft ($MSFT).  (stratechery)

Allergan’s ($AGN) defense against Valeant ($VRX) is about delay.  (MoneyBeat also Bronte Capital)

Finance

Just look how AbbVie ($ABBV) is paying for Shire Pharmaceuticals ($SHPG).  (FT)

Check out who the big winners are in the Alibaba ($BABA) IPO.  (Dealbook, Breakingviews)

Funds

On the gnawing reality gap for hedge fund investors.  (FT Alphaville)

Global

Chinese IPOs have been hot this year.  (WSJ)

Emerging markets have had little problem borrowing this year.  (FT)

Economy

The Chicago Fed National Activity Index slowed in June.  (Calculated Risk)

The Fed should stick to the macroeconomy not sectors.  (Gavyn Davies)

How much are demographics affecting wage growth figures?  (Bloomberg)

Earlier on Abnormal Returns

What you might have missed in our Sunday linkfest.  (Abnormal Returns)

Mixed media

Why is messaging on the smartphone so fragmented?  (A VC)

How a ‘social OS’ by being more contextual will out-Facebook, Facebook ($FB).  (WSJ)

Do we need another iOS podcasting app? Maybe if it is from Marco Ament.  (TechCrunch)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Monday links:  excessive valuations

The post Monday links: excessive valuations appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Sunday, 20 Jul 2014 12:55

Quote of the day

Jeff Miller, “If you were frightened about your investments last week, your stock positions are too big. You cannot react logically and effectively if you are paralyzed with fear.”  (A Dash of Insight)

Chart of the day

Small 0714 407x420 Sunday links:  paralyzed with fear

Small caps continue to lag.  (StockCharts Blog)

Markets

Regional banks don’t like the shrinking credit spread.  (StockCharts Blog)

Jeremy Grantham is looking for an M&A led market blow off.  (The Reformed Broker)

What’s wrong with the Korean and Chinese stock markets?  (Short Side of Long)

Strategy

Three reasons why it is a great time to be an investor.  (Jonathan Clements)

In praise of simple companies.  (Morgan Housel)

Sitting on your hands is an important part of any strategy.  (ZorTrades)

Why valuation metrics won’t help you time a stock market top.  (Pragmatic Capitalism)

On the value of finding your own “investing tribe.”  (The Escape Artist via Monevator)

Companies

The case for Yahoo ($YHOO) stock ahead of the Alibaba IPO. (Marketwatch)

Regulations are tilted against innovative internet TV services.  (GigaOM)

Finance

We need to re-think our standards for what constitutes a ‘sophisticated investor.’  (Jason Zweig)

Subprime lending for used cars is booming.  (Dealbook)

ETFs

More evidence that consistently outperforming the market is really tough.  (NYTimes)

Limited returns dispersion is making it tough for stock pickers.  (Focus on Funds)

Global

Why the Chinese economic growth hasn’t fallen off the map, yet.  (Marginal Revolution)

Economy

Why isn’t anybody talking about the deficit any more?  (Washington Post)

What matters more? National income inequality or global income inequality?  (The Upshot)

Why aren’t construction wages rising?  (Barry Ritholtz)

A look back at the economic week that was.  (Bonddad Blog, Big Picture)

The economic schedule for the coming week.  (Calculated Risk)

Earlier on Abnormal Returns

Top clicks this week on the site.  (Abnormal Returns)

What you might have missed in our Saturday linkfest.  (Abnormal Returns)

Mixed media

The best things often take a little more work.  (A VC)

Is  Kindle Unlimited worth it?  (Washington Post)

Bob Lefsetz, “The virality of John Oliver’s HBO program is astounding.”  (Big Picture)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Sunday links:  paralyzed with fear

The post Sunday links: paralyzed with fear appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Sunday, 20 Jul 2014 11:15

Thanks for checking in with us this weekend.  Here are the items our readers clicked most frequently on Abnormal Returns for the week ended Saturday, July 19th, 2014. The description reads as it does in the relevant linkfest:

  1. Pros are betting against this market while amateurs load up.  (The Reformed Broker)
  2. Why you need to own fewer stocks.  (Clear Eyes Investing)
  3. Like 2007 the stock market is showing signs of internal weakness.  (Pension Partners)
  4. Three lessons from recent market tops.  (The Reformed Broker)
  5. The Secret Club That Runs the World by Kate Kelly is a “very good book.”  (Aleph Blog)
  6. Momentum strategies work, period.  (Alpha Architect)
  7. The best 15 TV shows of 2014 (so far).  (Paste)
  8. Barry Ritholtz interviews Jeff Gundlach of Doubline Capital.  (Bloomberg View)
  9. The highest dividend yields by country.  (Bespoke)
  10. What is the momentum curve?  (TraderFeed)

You can support Abnormal Returns by visiting Amazon. You can also follow us on StockTwits and Twitter.

www.FeedBurner.com) Top clicks this week on Abnormal Returns

The post Top clicks this week on Abnormal Returns appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Saturday, 19 Jul 2014 12:14

The weekend is a great time to catch up on some posts that were either too long or simply didn’t fit in during the week. Hope you enjoy!

Investing

Why investors should impose a “cooling off period” before undertaking big portfolio changes.  (Servo Wealth)

Three ways to Think Like a Freak about your investments.  (Betterment)

A farmland investment primer.  (GMO)

Finance

Why a “fiduciary standard” for brokers is so elusive.  (Chuck Jaffe)

What Vanguard is doing to counter the threat from robo-advisors.  (RIABiz)

Personal finance

Should investors own more stocks as they approach retirement?  (Financial News via Focus on Funds)

More investors are interested in investing in farmland and timberland.  (WSJ)

Why you need a credit card.  (A Wealth of Common Sense)

Profiles

A profile of Kara Swisher of Recode.net.  (NYMag)

A profile of legendary investor Leon Cooperman (CNBC)

A profile of Janet Yellen the new chairman of the Federal Reserve.  (New Yorker)

Quotes

Jonathan Clements, “What is wealth? To me, it isn’t a particular sum of money. Rather, it’s the freedom to spend your days doing what you’re passionate about and what you think is important.”  (WSJ)

Heidi Rozen, “..remember, no one is thinking about you as hard as you are thinking about yourself. So don’t let it all worry you so much.”  (First Round Capital)

Venture capital business

Venture capital funds are becoming online businesses.  (TechCrunch)

What it is like for an entrepreneur to use an AngelList Syndicate.  (Brad Feld)

The venture capital industry is ripe for disruption.  (Institutional Investor)

Startups

What it means to be a venture capitalist.  (Charlie O’Donnell)

Billion dollar “unicorns” are overrated.  (Brad Feld)

Today’s VC investments won’t pay off for years, so why pre-judge what is happening today?  (TechCrunch)

Luck plays a huge role in success for angel investors.  (David Cohen)

Psychology

The Myers-Briggs test is atheoretical and meaningless.  (Vox)

On the connection between food and mood.  (NPR)

Why is it so hard for us to be alone with our thoughts?  (WSJ)

Health

How the likes of Dr. Oz disrupt the doctor-patient relationship.  (Vox)

Want to boost your metabolism? Cool down your bedroom.  (Well)

We are our bacteria.  (Well)

Food

Chicken is the world’s new go-to meat.  (Wonkblog)

What it is like to live on Soylent for a month.  (The Verge)

Americans prefer to grill with gas than charcoal.  (Wonkblog)

Americans are consuming less and less milk. (WSJ)

Sports

Why NFL teams are at present money making machines.  (Vox)

Fans are not sold on the (lack of) sound for electric race cars.  (Quartz)

Entertainment

Algorithms are now forecasting which bands are going to break big.  (Mother Jones via @digg)

Movies are increasingly getting released on VOD before the movie has left the theaters.  (LA Times)

Dungeons and Dragons has influenced an entire generation of writers.  (NYTimes)

Has technology killed the spy thriller?  (Guardian)

Earlier on Abnormal Returns

What you might have missed in our Friday linkfest.  (Abnormal Returns)

Mixed media

A dozen thing learned from Peter Thiel.  (25iq)

A large number of Shark Tank deals never close.  (Businessweek)

Some serious people think we need to have controls on robots.  (Business Insider)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Saturday links:  ripe for disruption

The post Saturday links: ripe for disruption appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Friday, 18 Jul 2014 16:32

Quote of the day

Joshua Brown, “When geopolitical tensions flare and the investor class sits up at attention, the character of the stock market tends to change almost immediately.”  (The Reformed Broker)

Chart of the day

FragileFive 549x420 Friday links:  investor class attentions

The so-called Fragile Five are having a good 2014.  (Dealbook)

Markets

How to approach a geopolitical induced sell-off.  (Humble Student)

Fund managers can’t get enough equities.  (Short Side of Long)

Which is worse: a rise in Treasury yields or credit spreads?  (Aleph Blog also Income Investing)

Every streak must end: a 1% market move happened.  (Ryan Detrick)

Are biotech stocks really in a bubble, Janet Yellen?  (MoneyBeat)

Strategy

Hedge funds love spin-off situations.  (Stock Spinoffs)

Saying you are “bullish or bearish” is pretty much meaningless.  (A Wealth of Common Sense)

Five ways to improve your trading today.  (Adam Grimes)

Seven ways to blow up your trading account.  (The Flying Investor)

Cullen Roche author of  Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance talks with Michael Covel.  (Trendfollowing Podcast)

Companies

One big reason for a 21st Century Fox ($FOXA) with Time Warner ($TWX) deal: sports.  (Dealbook)

Finance

Why hedge fund activists are on the rise.  (Institutional Investor)

Funds

What Vanguard earns for its funds via securities lending.  (Bogleheads)

The ETF Deathwatch for July 2014.  (Invest with an Edge)

Economy

Q2 GDP is looking up.  (Bonddad Blog)

American companies are pushing more cash to shareholders relative to investments.  (FiveThirtyEight)

Earlier on Abnormal Returns

What you might have missed in our Thursday linkfest.  (Abnormal Returns)

Mixed media

Does @SavedYouAClick prove Betteridge’s Law?  (Peter Hilton via Betteridge’s Law)

Amazon ($AMZN) is now offering an all-you-can-read option with Kindle Unlimited.  (GigaOM, Recode)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Friday links:  investor class attentions

The post Friday links: investor class attentions appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Thursday, 17 Jul 2014 16:55

Quote of the day

The Investor, “If you want to beat the market, it’s a good idea to do something different. Not being driven by short-term performance is one way to do so.”  (Monevator)

Chart of the day

IWM 0714 567x420 Thursday links:  doing something different

2014 has been all about small cap underperformance.  (Pension Partners)

Markets

Three lessons from recent market tops.  (The Reformed Broker)

Normal markets are not all that normal.  (The Irrelevant Investor)

Ranking the factors behind the low volatility market regime.  (FT Alphaville)

Notes from the Delivering Alpha 2014 conference.  (The Reformed Broker, part 2, part 3)

Why you should be wary of goldbugs.  (Bloomberg View)

Strategy

Rule #1 for investors: don’t be consistently stupid.  (Random Roger)

Investment plans have embedded forecasts whether you realize it or not.  (Pragmatic Capitalism)

Momentum strategies work, period.  (Alpha Architect)

Corrections happen: you just don’t know when.  (A Wealth of Common Sense)

Very few of us have optimized our work (trading) environments.  (TraderFeed)

Companies

Intel ($INTC) and Microsoft ($MSFT) are now hitting decade highs.  (TechCrunch)

How good have Warren Buffett’s forays into retailing been?  (WSJ)

Why HBO is such an attractive asset.  (Quartz)

How the 21st Century Fox ($FOXA) with Time Warner ($TWX) dance will play out.  (Business Insider, Buzzfeed)

Finance

Car insurance is about to get upended by pay-per-mile models.  (TechCrunch)

Network effects happen. Just not as often as investors anticipate.  (Musings on Markets)

Quants jumping from one financial firm to another are finding it tougher and tougher.  (Bloomberg)

ETFs

The downside of ETFs: overtrading.  (Focus on Funds, Larry Swedroe)

Should you tilt your portfolio?  (Rick Ferri)

Global

Health care spending is falling around the world.  (The Upshot)

Economy

Weekly initial unemployment claims continue to trend lower.  (Calculated Risk, Bespoke)

How housing prices are tracking.  (Real Time Economics)

The downside of central bankers jawboning the markets.  (The Upshot)

Earlier on Abnormal Returns

What you might have missed in our Wednesday linkfest.  (Abnormal Returns)

Mixed media

How to feel better about your spending.  (Behavior Gap)

How to become a cable news pundit.  (The Week)

How mindfulness has become a competitive weapon for professionals.  (New Yorker)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Thursday links:  doing something different

The post Thursday links: doing something different appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Wednesday, 16 Jul 2014 16:35

You can keep up with all of our posts by signing up for our daily e-mail. Thousands of other readers already have. Don’t miss out!

Quote of the day

Horace Deidu, “Were it not for the tenacious independence of Apple and the business model agility of IBM, neither company would be around today to leverage one another.”  (Asymco)

Chart of the day

Murdoch 0714 Wednesday links:  tenacious independence

Investors can’t stop themselves from looking for signs of a market top.  (Phil Pearlman also Zero Hedge)

Markets

Like 2007 the stock market is showing signs of internal weakness.  (Pension Partners)

The stock market is experiencing some divergences.  (Humble Student)

Are investors being lulled into a sense of complacency by low interest rates?  (Sober Look)

Commodities

Commodity seasonality should only be one part of a trade equation.  (All Star Charts)

Grains are in a textbook downtrend.  (Attain Capital)

Commodity investors are once again earning the ‘roll yield.’  (WSJ)

Strategy

Backtests are fun but not necessarily very informative.  (A Wealth of Common Sense)

Bubbles are fun, until they are not.  (TraderFeed)

Why you can’t become Warren Buffett. An excerpt from Cullen Roche’s Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance.  (Business Insider)

Companies

Apple ($AAPL) and IBM ($IBM) are forging closer ties around the iPad.  (WSJ, The Verge, Recode)

Yahoo ($YHOO) increasingly looks like a play on Alibaba.  (Pando Daily, Quartz, WSJ)

Rupert Murdoch wanted to merge 21st Century Fox ($FOXA) with Time Warner ($TWX).  (Dealbook, Quartz, Businessweek)

The US tobacco industry can’t get much more concentrated.  (Dealbook, FT)

Finance

The big banks are no longer the profit machines they were pre-crisis.  (The Upshot)

Walgreen ($WAG) is contemplating a tax inversion.  (WSJ)

Global

Is Spain’s stock market a false dawn?  (Market Anthropology)

Buffett’s favorite market indicator applied to Japan.  (Meb Faber)

Economy

New homebuilders are pretty optimistic.  (Calculated Risk)

Retail sales were weaker than expected.  (Bespoke)

Why secular stagnation is a myth.  (Wonkblog)

What if health care spending grows a lot slower than commonly thought?  (Business Insider also The Upshot)

Earlier on Abnormal Returns

What you might have missed in our Tuesday linkfest.  (Abnormal Returns)

Mixed media

Techniques on how to cut the cable cord.  (WSJ)

Google ($GOOG) is now tracking gas leaks.  (Wonkblog)

Your friends look like you because there are genetic similarities.  (Washington Post)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Wednesday links:  tenacious independence

The post Wednesday links: tenacious independence appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Date: Tuesday, 15 Jul 2014 16:52

Quote of the day

Brett Steenbarger, “The value of information filters is that they minimize distractions and interruptions from sources with low signal-to-noise ratios.”  (TraderFeed)

Chart of the day

Crude 0714 624x289 Tuesday links:  information filters

Crude oil is weakening.  (Kimble Charting)

Markets

Pros are betting against this market while amateurs load up.  (The Reformed Broker)

The highest dividend yields by country.  (Bespoke)

Forward earnings continue to tick higher.  (Dr. Ed’s Blog)

Copper prices are perking up.  (Dragonfly Capital)

Why our expectations run the markets.  (A Wealth of Common Sense)

The Fed is now talking down markets.  (Focus on Funds)

Strategy

Why you should distinguish between bubbles and manias.  (TraderFeed)

At some point market bears just get worn out.  (Vitaily Katsenelson)

100% of investors make mistakes.  (Pragmatic Capitalism)

Comparing simple and complicated models to forecast long-term stock market returns.  (Alpha Architect)

The Secret Club That Runs the World by Kate Kelly is a “very good book.”  (Aleph Blog)

Finance

Equity research is declining in quality.  (Digits to Dollars)

The rush to tax inversions makes for strange bedfellows.  (Dealbook)

Why you should expect more tax inversions in pharma.  (Dealbook)

Funds

Simon Lack, “For the investor, it’s not a bad rule to simply eliminate from consideration any investment manager not personally and significantly invested in his own strategy.”  (SL Advisors)

All is not well between Pimco and bond bigfoot Bill Gross.  (WSJ)

On the differences between high yield bonds and bank loans.  (ETF)

Calamos ($CLMS) is getting into ETFs in a transparent fashion.  (Focus on Funds)

Yet another year in which active management doesn’t pay off.  (The Reformed Broker)

Global

Can China manage its own economic deceleration?  (FT Alphaville)

Investors can’t get enough Aussie bonds.  (WSJ)

The Australian and Canadian dollar are no longer all that correlated.  (FT)

Earlier on Abnormal Returns

What you might have missed in our Monday linkfest.  (Abnormal Returns)

Mixed media

We are underestimating the effect of car sharing and self-driving cars.  (Seth Godin)

Fantasy sports are looking more like Wall Street every day.  (MoneyBeat)

The value-of-practice debate just shifted towards talent.  (NYTimes also EconLog)

You can support Abnormal Returns by shopping at Amazon. Don’t forget to follow us on StockTwits and Twitter.

www.FeedBurner.com) Tuesday links:  information filters

The post Tuesday links: information filters appeared first on Abnormal Returns.

Author: "abnormalreturns" Tags: "General"
Comments Send by mail Print  Save  Delicious 
Next page
» You can also retrieve older items : Read
» © All content and copyrights belong to their respective authors.«
» © FeedShow - Online RSS Feeds Reader