Quote of the day
Aaron Brown, “One problem with using correlations in risk analysis is you may misestimate them; things you think are uncorrelated may not be.” (Minyanville)
Chart of the day
Are high yield bond spreads now at attractive levels? (Total Return, Income Investing)
Markets
Holding stocks for the long run doesn’t always work. (Also Sprach Analyst)
The three universal laws of Wall Street. (Rick Ferri)
A look the big picture for markets in graphs. (The Short Side of Long)
Strategy
Why you need to have a written investment plan. (WSJ)
A sign of the times: institutional investors have rediscovered the merits of covered calls. (Institutional Investor)
Where Rob Arnott is investing at the moment. (Fortune)
How some great traders have dealt with adversity. (SMB Training)
How to read Jack Schwager’s Hedge Fund Wizards. (Reading the Markets)
Companies
No wonder gold miners have such a hard time keeping up with gold of late. (WSJ)
Anecdotal that the JC Penney ($JCP) turnaround just may work. (Calafia Beach Pundit)
On the uncertain long term prospects for Facebook ($FB). (Baseline Scenario, 24/7 Wall St.)
Finance
Let’s make HFT compete on price, not just time. (Businessweek)
Banks are getting out of the corporate bond market making business. (Sober Look)
No wonder brokers are leaving to become RIAs. (RIABiz)
ETFs
The bet you are making with the new AlphaClone Alternative Alpha ETF ($ALFA). (TheStreet)
On the downside of in-house mutual fund of funds. (Journal of Finance)
How low volatility ETFs performed in May. (ETFdb)
What fund investors do wrong. (Morningstar)
Global
Spain has three options at this point. (FT)
A look at just how much the iron ore boom has mean to Australia. (Bronte Capital)
Europe isn’t acting as if this is an existential crisis. (Daniel Gross)
The two choices facing Europe. (Felix Salmon)
Economy
The economy is not as bad as the employment report may indicate. (Bonddad Blog)
Demographics and a crappy economy account for our youth unemployment problem. (Invictus)
Why aren’t we spending more on infrastructure? (The Atlantic)
Earlier on Abnormal Returns
What you missed in our Monday morning linkfest. (Abnormal Returns)
Mixed media
What Motif Investing is going to with all the capital they have raised. (GigaOM)
Building a better search tool for investors. (Tradestreaming)
Clever: airline saves money by replacing in-flight entertainment system with iPads. (Bloomberg)
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