Quote of the day

John Kay, “Financial stability is best promoted by designing a system that is robust and resilient in the face of failure, which is why effective and implementable mechanisms of resolution are the key to meaningful financial reform.”  (FT)

Chart of the day

NFLX Chart

NFLX data by YCharts

How much longer can Netflix dominate?  (The Atlantic)

Video of the day

Cliff Asness talks about the power of diversification with Consuelo Mack.  (Wealthtrack)

Markets

“Safe” stocks are expensive.  (Mebane Faber)

Signs of shifting sector leadership.  (Charts etc.)

Strategy

How to blend Fama and Shiller’s insights into a coherent portfolio strategy.  (Capital Spectator)

Why you can’t invest like Yale.  (FT Alphaville)

When to use a time stop instead of a price stop.  (The Stock Bandit)

Companies

The case for Microsoft ($MSFT).  (Business Insider)

When, if ever, will investors demand profits from Amazon ($AMZN)?  (NYTimes contra Slate)

Now is the time for Netflix ($NFLX) to do a secondary offering.  (Kid Dynamite also Herb Greenberg)

Should DuPont ($DD) spin-off its ag business?  (WSJ)

Finance

There is no shortage of “motifs” to invest in.  (Businessweek)

Dwolla is building its own payments infrastructure.  (Quartz)

How much are wirehouses costing their customers?  (InvestmentNews)

How to think about the JP Morgan ($JPM) settlement.  (Felix Salmon)

Funds

Seven closed-end bond funds selling at a discount.  (Brett Arends)

Just because it is an index fund doesn’t mean you shouldn’t read beyond the label.  (Rick Ferri)

A look at the Barclays ETN+ Shiller CAPE ETN ($CAPE) .  (IndexUniverse)

Where did all the truly active managers go?  (Focus on Funds)

MSCI launches a global balanced index.  (Marketwatch)

Economy

Yet another disappointing jobs report for September.  (Calculated Risk, Quartz, Gavyn Davies)

Kids are moving out of their parent’s basements.  (FT Alphaville)

Why state-like entities generally don’t default.  (Daniel Gross)

What you get when you outsource government economic data to Carlyle Group ($CG).  (Term Sheet)

Earlier on Abnormal Returns

Life’s too short: Fantex edition.  (Abnormal Returns)

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

Mixed media

Soylent wants to replace your everyday meals.  (peHUB)

Hands-free texting is no safer when driving.  (Scientific American)

Want to take a balloon to the edge of space?  (WSJ)

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