Academic research and the power of momentum stocks. (Crossing Wall Street)

Which will give first, the stock market or interest rates? (CXO Advisory Group)

Earnings recessions and their effect on the stock market and expected 2008 sector earnings. (Bespoke Investment Group, ibid)

Does high economic growth really lead to high stock market returns? (IndexUniverse.com)

“(T)he simultaneous occurrence of a flat or inverted yield curve and a high credit spread has been a strong signal of an imminent recession.” (Alea)

The high yield default rate is expected to quadruple in 2008. (Bloomberg.com)

“It has been a year unlike any other for AQR and Asness.” (NYPost.com)

What is the relationship between hedge fund lock-ups and alpha generation? (All About Alpha)

Another hedge fund manager wants the benefits of “permanent capital.” (DealBook)

Hedge funds are getting creative to raise capital to take advantage of the subprime credit mess. (WSJ.com)

Shocking fund statistics! (Morningstar.com)

“Is there a sign that the shipping news is about to get gloomy?” (FT Alphaville)

Just what does it take to be “too big to fail“? (Accrued Interest)

The Super-SIV is turning into the so-so-SIV. (WSJ.com, FT Alphaville, naked capitalism, DealBreaker.com)

Non-shocker of the day. Executive pay consultants have conflicts of interest. (NYTimes.com)

Is the U.S. dollar near a bottom? (Econbrowser.com)

The birth/death adjustment and the real state of the jobs market. (Big Picture)

Happy second blogiversary to Dr. Brett. (TraderFeed)

Is the gulf between bloggers and professional journalists narrowing or getting wider? (Market Movers)

Arnold Kling on the best economics books of 2007. (TCS Daily)

The BCS system is broken. What comes next? (American.com)

Abnormal Returns appreciates any and all feedback. Feel free to drop us a line.