Archive for October, 2009

• Ratio charts run amok
  abnormalreturns, October 23rd, 2009 at 2:09 pm, Comments: 0

  We recently wrote about the dangers that charts can pose to our pattern-seeking brains.  Charts can be useful tools, efficiently summarizing a great deal of [...]

• Friday links: slick sales pitches
  abnormalreturns, October 23rd, 2009 at 11:55 am, Comments: 0

  “Meriwether, in other words, is proof that markets are not efficient, and investors are frequently stupid, and frequently dazzled by slick sales pitches.”  (Ezra Klein [...]

• Buy and hold the best of a bad lot?
  abnormalreturns, October 22nd, 2009 at 2:15 pm, Comments: 0

  We have been writing on the topic of buy-and-hold investing for the past few weeks now.  We have discussed the need for entries AND exits [...]

• Thursday links: demand for yield
  abnormalreturns, October 22nd, 2009 at 11:52 am, Comments: 0

  The demand for yield is blowing new bubbles.  (Clusterstock) John Meriwether is raising money for yet another hedge fund.  Is the risk culture back?  (Abnormal [...]

• Return to a risky normal
  abnormalreturns, October 22nd, 2009 at 11:26 am, Comments: 0

  Sam Jones in the FT reports that John Meriwether is getting back into the hedge fund business.  Reportedly and not surprisingly the new JM Advisors [...]

• Pattern seeking run amok
  abnormalreturns, October 21st, 2009 at 1:26 pm, Comments: 0

  We are pattern-seeking, story-telling animals. – Edward E. Leamer* We human beings are pattern seekers.  We can’t help it.  We see patterns even where none [...]

• Wednesday links: cash returns
  abnormalreturns, October 21st, 2009 at 11:40 am, Comments: 0

  Low returns on cash are pushing investors into riskier assets.  (FT Alphaville) Is the gold trade getting crowded?  (Rolfe Winkler) Is the “distressed debt party” [...]

• Tuesday links: making market calls
  abnormalreturns, October 20th, 2009 at 11:31 am, Comments: 0

  “If you’re in the business of making market calls, you’re going to wrong. That’s just how it is. I’m wrong all the time. So is [...]

• The song remains the same
  abnormalreturns, October 19th, 2009 at 9:33 pm, Comments: 0

  Alternatives to mutual funds continue to flood the marketplace.  ETFs have grown into an industry unto itself with some $700 billion in assets under management.  [...]

• Monday links: competence and confidence
  abnormalreturns, October 19th, 2009 at 11:38 am, Comments: 0

  With the insider trading cat out of the bag, former colleagues are turning on Galleon Group head Raj Rajaratnam.  (WSJ, Clusterstock) Are there more hedge [...]