Quote of the day

Gideon Rachman, “The euro is not an end in itself. The single currency is just an instrument, aimed at promoting economic prosperity and political harmony across Europe.”  (FT)

Chart of the day

The bounce in fixed income ETFs illustrated.  (Bespoke)


Keep an eye on 3.5% on the 10-year Treasury note.  (Crossing Wall Street)

IPOs as lottery tickets.  (Bucks Blog)

Should muni bond investors be worried about losing their tax break?  (WSJ)

Looking out a few years to some positives for the US stock market.  (FT Alphaville)

More thoughts on the dispersion trade.  (Condor Options)

The options learning curve is all backwards.  (Tyler’s Trading)


Darren Miller, “What is innate that has an impact on our trading are habits.”  (Attitrade)

You can’t calculate expectancy without the win/loss probability.  (Kid Dynamite)

Don’t listen to the so-called experts.  It is possible to beat the stock market.  (ValueWalk)

Take valuation indicators with a big grain of salt.  (Above the Market)

What to do when you are out of synch with the market.  (Dynamic Hedge)

Research shows that asset classes do exhibit intermediate term momentum.  (CXO Advisory Group)


David Einhorn is long GM ($GM) and short Green Mountain Coffee ($GMCR).  (Market Folly, Deal Journal)

John Paulson looks to cash out of his stake in Delphi Automotive ($DLPH).  (Deal Journal)

Barnes & Noble ($BKS) is making a valiant effort to say relevant.  (SplatF)

Be skeptical of the Groupon ($GRPN) craze.  (SurlyTrader)

The patent system is pretty much broken.  (TechInsidr)


Can Wall Street wean itself off short-term funding?  (Bloomberg)

Can the finance sector, like MF Global, be trusted to self-regulate?  (Big Picture)

Nassim Taleb wants to end banker bonuses.  (NYTimes, Dealbreaker, naked capitalism)

The move from wirehouses to RIAs is real and getting bigger.  (I Heart Wall Street)

Hedge fund performance in October was quite muted.  (AR+Alpha)


The downside of 3x leveraged ETFs.  (Bespoke)

ETF tickers matter.  (Total Return)

The downsides of a Tobin tax.  (IndexUniverse)


Has Europe finally come to terms with its problems?  (Ultimi Barbarorum)

Europe has a leadership problem.  (Felix Salmon)

The distressing spread between Italian and German government bond yields.  (Bespoke)

The ECB is Europe’s last best hope.  (Credit Writedowns)

It seems that China can avoid a hard landing.  (FT Alphaville)

On the long term future of oil prices.  (The Source)


Small business optimism ticks up.  (Calculated Risk)

What Americans aren’t buying.  (FT Alphaville)

Job openings are on the rise.  (Carpe Diem)

The upside of this economic recovery.  (Minyanville)

Consumer deleveraging is real.  (EconomPic Data)

Building a better, simpler GDP forecasting model.  (Capital Spectator)

What news affects the term structure of interest rates and how?  (FRBSF)

Steve Randy Waldman, “We want most people to face a positive real interest rate, not because that is the price that equilibrates a market, but because positive real interest rates reward behavior we wish to uphold as virtuous.”  (Interfluidity)

Earlier on Abnormal Returns

Bubble spotting and underperformance anxiety.  (Abnormal Returns)

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


Tyler Cowen’s best books of the year.  (Marginal Revolution)

Advance praise for the hedge fund-based thriller The Fear Index by Robert Harris.*  (Investment Europe via @moneyscience)

Mixed media

Where the new meritocracy went wrong.  (The Atlantic)

Why do people eat too much?  In part, because of status.  (The Frontal Cortex)

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*Amazon affiliate. You know the drill.