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	<title>Abnormal Returns</title>
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	<link>http://abnormalreturns.com</link>
	<description>A wide-ranging, forecast-free investment blog</description>
	<pubDate>Fri, 09 May 2008 23:58:17 +0000</pubDate>
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			<item>
		<title>Friday links:  absent edition</title>
		<link>http://abnormalreturns.com/2008/05/09/friday-links-absent-edition/</link>
		<comments>http://abnormalreturns.com/2008/05/09/friday-links-absent-edition/#comments</comments>
		<pubDate>Fri, 09 May 2008 17:48:47 +0000</pubDate>
		<dc:creator>abnormalreturns</dc:creator>
		
		<category><![CDATA[General]]></category>

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		<description><![CDATA[Abnormal Returns is going to be taking a short break from blogging. During an earlier break we wrote this post highlighting some additional linkfests worth your time.  In the meantime, feel free to drop us a line with any questions and/or comments.  Will be back to our regular posting schedule as soon as [...]]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p><strong>Abnormal Returns</strong> is going to be taking a short break from blogging. During an earlier break we wrote <a title="Abnormal Returns" href="/2007/10/25/investment-linkfest-links/" target="_self">this post</a> highlighting some additional linkfests worth your time.  In the meantime, feel free to <a title="Abnormal Returns" href="/contact/" target="_self">drop us a line</a> with any questions and/or comments.  Will be back to our regular posting schedule as soon as possible.</p>
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		<title>Thursday links:  ETN credit risk</title>
		<link>http://abnormalreturns.com/2008/05/08/thursday-links-etn-credit-risk/</link>
		<comments>http://abnormalreturns.com/2008/05/08/thursday-links-etn-credit-risk/#comments</comments>
		<pubDate>Thu, 08 May 2008 15:25:07 +0000</pubDate>
		<dc:creator>abnormalreturns</dc:creator>
		
		<category><![CDATA[General]]></category>

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		<description><![CDATA[&#8220;The numbers vary a tad - but the leveraged loan clearout continues.&#8221;  (FT Alphaville)
What happens when multiple, overlapping dark pools of liquidity actually make trading harder?  (WSJ.com)
Gold market timers have gone cold on the metal during this pullback.  (Barrons.com)
A closer look at Warren Buffett was up to when Berkshire Hathaway sold a [...]]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p>&#8220;The numbers vary a tad - but<strong> the leveraged loan clearout continues</strong>.&#8221;  (<a title="FT Alphaville" href="http://ftalphaville.ft.com/blog/2008/05/08/12879/an-lbo-turning-point/" target="_self"><em>FT Alphaville</em></a>)</p>
<p>What happens when multiple, overlapping <strong>dark pools of liquidity </strong>actually make trading harder?  (<a title="WSJ.com" href="http://online.wsj.com/article/SB121021114160175857.html" target="_self"><em>WSJ.com</em></a>)</p>
<p><strong>Gold market timers</strong> have gone cold on the metal during this pullback.  (<a title="Barrons.com" href="http://online.barrons.com/article/SB121001970805068509.html" target="_self"><em>Barrons.com</em></a>)</p>
<p>A closer look at <strong>Warren Buffett</strong> was up to when Berkshire Hathaway sold a slew of stock index put options.  (<a title="Financial Crookery" href="http://crookery.blogspot.com/2008/05/warren-buffetts-vega-games.html" target="_self"><em>Financial Crookery</em></a>)</p>
<p>Who said stock in a <strong>public hedge fund company</strong> would help keep star managers?  (<a title="Telegraph.co.uk" href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/08/cnglg108.xml" target="_self"><em>Telegraph.co.uk</em></a>)</p>
<p>There is no shortage of M&amp;A in the world of <strong>alternative asset managers</strong>.  (<a title="DealZone" href="http://blogs.reuters.com/reuters-dealzone/2008/05/07/eyeing-alternatives/" target="_self"><em>DealZone</em></a>)</p>
<p><strong>GSAM</strong> bounces back after an awful 2007.  (<a title="DealBreaker.com" href="http://dealbreaker.com/2008/05/gsam_back_in_the_game.php" target="_self"><em>DealBreaker.com</em></a>)</p>
<p>How do <strong>mutual funds managed by hedge fund managers</strong> perform?  (<a title="SSRN.com" href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1107675" target="_self"><em>SSRN.com</em></a>)</p>
<p>More information does not necessarily lead to better decision making.  (<a title="Bill Rempel" href="http://www.billakanodoodahs.com/2008/05/do-you-really-need-more-information/" target="_self"><em>Bill Rempel</em></a>)</p>
<p>Are investors ignoring <strong>the incremental credit risk of ETNs</strong>?  (<a title="Morningstar.com" href="http://socialize.morningstar.com/NewSocialize/blogs/M_Jeffrey/archive/2008/05/07/On-ETN-Pricing.aspx" target="_self"><em>Morningstar.com</em></a> also <a title="IndexUniverse.com" href="http://www.indexuniverse.com/blog/31/4095-theres-only-one-thing-wrong-with-etns.html" target="_self"><em>IndexUniverse.com</em></a>)</p>
<p>A book excerpt on what you need to know about &#8216;<strong>portable alpha</strong>.&#8217;  (<a title="All About Alpha" href="http://allaboutalpha.com/blog/2008/05/08/portable-alpha-theory-practice-exclusive-chapter-downloads-at-allaboutalphacom/" target="_self"><em>All About Alpha</em></a>)</p>
<p>Keynes&#8217; name is often taken in vain in regards to<strong> momentum investing</strong>.  (<a title="Capital Chronicle" href="http://alzahr.blogspot.com/2008/05/no-momentum-people-keynes-was-not-your.html" target="_self"><em>Capital Chronicle</em></a>)</p>
<p><strong>Share buybacks</strong> are not all they are cracked up to be.  (<a title="Fundamental Insights" href="http://financialjoyride.blogspot.com/2008/05/why-you-should-short-companies-doing.html" target="_self"><em>Fundamental Insights</em></a>)</p>
<p>A positive review for the newish market data site - <a title="Finviz.com" href="http://finviz.com/" target="_self"><strong>Finviz.com</strong></a>.  (<a title="Kirk Report" href="http://www.thekirkreport.com/2008/05/finviz.html" target="_self"><em>Kirk Report</em></a>)</p>
<p>On the importance of <a title="Abnormal Returns" href="/2008/01/03/performance-measurement-and-the-challenge-of-active-managment/" target="_self"><strong>performance measurement</strong></a> for traders.  (<a title="TraderFeed" href="http://traderfeed.blogspot.com/2008/05/quarterly-performance-review-for.html" target="_self"><em>TraderFeed</em></a>)</p>
<p>The Fed wants to pay interest on <strong>commercial bank reserves</strong>.  (<a title="Alea" href="http://www.aleablog.com/the-european-central-bank-and-the-federal-reserve/" target="_self"><em>Alea</em></a>)</p>
<p><strong>1Q GDP estimates</strong> are in all likelihood misleading.  (<a title="Calculated Risk" href="http://calculatedrisk.blogspot.com/2008/05/feldstein-misleading-statistics.html" target="_self"><em>Calculated Risk</em></a>, <a title="naked capitalism" href="http://www.nakedcapitalism.com/2008/05/martin-feldstein-calls-downturn-takes.html" target="_self"><em>naked capitalism</em></a>)</p>
<p><strong>Men are taking a disproportionate hit</strong> in this economic downturn.  (<a title="BusinessWeek.com" href="http://www.businessweek.com/magazine/content/08_20/b4084028289172.htm" target="_self"><em>BusinessWeek.com</em></a>)</p>
<p>A fundamental misunderstanding on <strong>the nature of the CPI</strong>.  (<a title="Economist's View" href="http://economistsview.typepad.com/economistsview/2008/05/tim-duy-misunde.html" target="_self"><em>Economist&#8217;s View</em></a>)</p>
<p>&#8220;<strong>New Zealand is the Saudi Arabia of milk</strong>, the world&#8217;s biggest dairy exporter.&#8221;  (<a title="WSJ.com" href="http://online.wsj.com/article/SB121018928727674565.html" target="_self"><em>WSJ.com</em></a>)</p>
<p>More <strong>investing banking lingo</strong>.  (<a title="Mergers &amp; Inquisitions" href="http://www.mergersandinquisitions.com/2008/05/07/investment-banking-lingo-part-2/" target="_self"><em>Mergers &amp; Inquisitions</em></a>)</p>
<p>The notion of prizes for &#8216;<strong>econoblogging excellence</strong>&#8216; surfaces again.  (<a title="Market Movers" href="http://www.portfolio.com/views/blogs/market-movers/2008/05/07/blogonomics-econoblog-awards" target="_self"><em>Market Movers</em></a>, <a title="naked capitalism" href="http://www.nakedcapitalism.com/2008/05/blogging-cathedral-and-bazaar.html" target="_self"><em>naked capitalism</em></a>)</p>
<p>Thanks again for checking in with <strong>Abnormal Returns</strong>.  We appreciate <a title="Abnormal Returns" href="/contact/" target="_self">any (and all) feedback</a>.</p>
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		<item>
		<title>Wednesday links:  times are tough</title>
		<link>http://abnormalreturns.com/2008/05/07/wednesday-links-times-are-tough/</link>
		<comments>http://abnormalreturns.com/2008/05/07/wednesday-links-times-are-tough/#comments</comments>
		<pubDate>Wed, 07 May 2008 17:22:33 +0000</pubDate>
		<dc:creator>abnormalreturns</dc:creator>
		
		<category><![CDATA[General]]></category>

		<guid isPermaLink="false">http://abnormalreturns.wordpress.com/?p=1286</guid>
		<description><![CDATA[Times are tough when an asset manager needs to raise capital in billion dollar chunks.  (WSJ.com, Deal Journal, Market Movers)
Inflationary psychology is back, and the Fed is worried.  (Real Time Economics, Calculated Risk)
The Fed is running out of T-bills.  (Alea)
&#8220;Price increases are simply more noticeable — more salient, as psychologists would say [...]]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p>Times are tough when an asset manager needs to raise capital in <strong>billion dollar chunks</strong>.  (<a title="WSJ.com" href="http://online.wsj.com/article/SB121007472435370423.html" target="_self"><em>WSJ.com</em></a>, <a title="Deal Journal" href="http://blogs.wsj.com/deals/2008/05/06/mean-street-at-legg-mason-the-daylight-you-see-may-be-a-train/" target="_self"><em>Deal Journal</em></a>, <a title="Market Movers" href="http://www.portfolio.com/views/blogs/market-movers/2008/05/07/turning-around-legg-mason" target="_self"><em>Market Movers</em></a>)</p>
<p><strong>Inflationary psychology is back</strong>, and the Fed is worried.  (<a title="Real Time Economics" href="http://blogs.wsj.com/economics/2008/05/06/kc-feds-hoenig-worries-about-inflation-psychology/" target="_self"><em>Real Time Economics</em></a>, <a title="Calculated Risk" href="http://calculatedrisk.blogspot.com/2008/05/feds-hoenig-serious-inflation-risks.html" target="_self"><em>Calculated Risk</em></a>)</p>
<p>The Fed is <strong>running out of T-bills</strong>.  (<a title="Alea" href="http://www.aleablog.com/fed-running-out-of-t-bills/" target="_self"><em>Alea</em></a>)</p>
<p>&#8220;<strong>Price increases are simply more noticeable</strong> — more salient, as psychologists would say — than price decreases.&#8221;  (<a title="NYTimes.com" href="http://www.nytimes.com/2008/05/07/business/07leonhardt.html" target="_self"><em>NYTimes.com</em></a> also <a title="Crossing Wall Street" href="http://www.crossingwallstreet.com/archives/2008/05/looking_at_infl.html" target="_self"><em>Crossing Wall Street</em></a>)</p>
<p>&#8220;In general, we should treat <strong>spreads with more money behind them</strong> as more informative than those with less&#8230;&#8221;  (<a title="Interfluidity" href="http://interfluidity.powerblogs.com/posts/1210118256.shtml" target="_self"><em>Interfluidity</em></a>)</p>
<p>What effect might <strong>binary options</strong> have on volatility?  (<a title="Daily Options Report" href="http://adamsoptions.blogspot.com/2008/05/even-more-derivatives.html" target="_self"><em>Daily Options Report</em></a>)</p>
<p>The performance of <strong>high momentum stocks</strong> around earnings announcements.  (<a title="CXOAG" href="http://www.cxoadvisory.com/blog/external/blog5-07-08/" target="_self"><em>CXO Advisory Group</em></a>)</p>
<p>Ten core ideas of <strong>trading psychology</strong>.  (<a title="TraderFeed" href="http://traderfeed.blogspot.com/2008/05/ten-core-ideas-of-trading-psychology.html" target="_self"><em>TraderFeed</em></a>)</p>
<p>Great companies don&#8217;t always make a great stock, the case of <strong>Cisco (<a title="Yahoo! Finance" href="http://finance.yahoo.com/q?s=CSCO" target="_self">CSCO</a>)</strong>.  (<a title="ClusterStock.com" href="http://www.clusterstock.com/2008/5/great_companies_make_great_investments_right_wrong_see_cisco" target="_self"><em>ClusterStock.com</em></a>)</p>
<p>Stock picks from the <strong>Value Investing Congress</strong>.  (<a title="ETF Expert" href="http://www.etfexpert.com/etf_expert/2008/05/value-investing.html" target="_self"><em>ETF Expert</em></a>)</p>
<p>&#8216;<strong>Club deals</strong>&#8216; seem to happen at a discount to solo deals.  (<a title="DealBook" href="http://dealbook.blogs.nytimes.com/2008/05/05/measuring-the-club-deal-discount/" target="_self"><em>DealBook</em></a>)</p>
<p>The state of the <strong>private equity industry</strong>.  (<a title="Knowledge@Wharton" href="http://knowledge.wharton.upenn.edu/special_section.cfm?specialID=74" target="_self"><em>Knowledge@Wharton</em></a>)</p>
<p>Don&#8217;t take too much comfort from recent <strong>positive GDP reports</strong>.  (<a title="Big Picture" href="http://bigpicture.typepad.com/comments/2008/05/positive-gdp-re.html" target="_self"><em>Big Picture</em></a>)</p>
<p>A new consensus on the <strong>payroll employment report</strong>.  (<a title="Dash of Insight" href="http://oldprof.typepad.com/a_dash_of_insight/2008/05/informational-p.html" target="_self"><em>Dash of Insight</em></a>)</p>
<p>The <strong>housing market </strong>is, contrary to some reports, not yet at a bottom.  (<a title="Calculated Risk" href="http://calculatedrisk.blogspot.com/2008/05/housing-another-day-another-wsj-bottom.html" target="_self"><em>Calculated Risk</em></a>)</p>
<p><strong>$100 a barrel oil</strong> is still pretty cheap.  (<a title="Capital Spectator" href="http://www.capitalspectator.com/WM/2008/05/there_will_be_oil.html" target="_self"><em>Capital Spectator</em></a>)</p>
<p>Talk of the &#8220;super spike&#8221; in <strong>oil prices</strong> is back.  (<a title="FT Alphaville" href="http://ftalphaville.ft.com/blog/2008/05/06/12821/goldman-sachs-surge-theorist-says-200-oil-in-sight/?source=rss" target="_self"><em>FT Alphaville</em></a>, <a title="Big Picture" href="http://bigpicture.typepad.com/comments/2008/05/wtf-headline-of.html" target="_self"><em>Big Picture</em></a>, <a title="Infectious Greed" href="http://paul.kedrosky.com/archives/2008/05/06/how_much_worse.html" target="_self"><em>Infectious Greed</em></a>)</p>
<p><strong>Gas tax holiday hysterics</strong>.  (<a title="Mankiw Blog" href="http://gregmankiw.blogspot.com/2008/05/in-praise-of-gas-tax-hysterics.html" target="_self"><em>Mankiw Blog</em></a>)</p>
<p>The <strong>launch of the MCDX</strong> is a &#8220;game changer&#8221; for the muni bond market.  (<a title="Accrued Interest" href="http://accruedint.blogspot.com/2008/05/mcdx-once-munis-start-down-dark-path.html" target="_self"><em>Accrued Interest</em></a>)</p>
<p><strong>Municipal bond insurance</strong> really is different than other types of insurance.  (<a title="DealBreaker.com" href="http://dealbreaker.com/2008/05/is_bond_insurance_magical.php" target="_self"><em>DealBreaker.com</em></a>)</p>
<p>People seem to blur the distinction between <strong>health insurance and health care</strong>.  (<a title="EconLog" href="http://econlog.econlib.org/archives/2008/05/why_people_buy.html" target="_self"><em>EconLog</em></a>)</p>
<p>A huge launch for a <strong>video game</strong>.  (<a title="Tech Trader Daily" href="http://blogs.barrons.com/techtraderdaily/2008/05/07/take-two-gta-iv-week-one-sales-top-500-million/" target="_self"><em>Tech Trader Daily</em></a>)</p>
<p>Everybody but <em>Abnormal Returns</em> joins the <strong>Sprint-Clearwire WiMax partnership</strong>.  (<a title="Tech Observer" href="http://www.portfolio.com/views/blogs/the-tech-observer/2008/05/07/sprint-deal-lurching-toward-an-all-wireless-always-connected-future" target="_self"><em>Tech Observer</em></a>, <a title="WSJ.com" href="http://online.wsj.com/article/SB121015567027273579.html" target="_self"><em>WSJ.com</em></a>, <a title="DealBook" href="http://dealbook.blogs.nytimes.com/2008/05/07/reading-the-signals-at-sprint-nextel/" target="_self"><em>DealBook</em></a>, <a title="Silicon Alley Insider" href="http://www.alleyinsider.com/2008/5/is_sprint_clearwire_doomed_from_the_start" target="_self"><em>Silicon Alley Insider</em></a>)</p>
<p>We have to concur with this rave review of the new <strong>CBS Digital Radio Network</strong>.  (<a title="Fred Wilson" href="http://avc.blogs.com/a_vc/2008/05/the-cbs-digital.html" target="_self"><em>Fred Wilson</em></a>)</p>
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		<item>
		<title>Tuesday links:  Sprint Extel?</title>
		<link>http://abnormalreturns.com/2008/05/06/tuesday-links-sprint-extel/</link>
		<comments>http://abnormalreturns.com/2008/05/06/tuesday-links-sprint-extel/#comments</comments>
		<pubDate>Tue, 06 May 2008 18:25:50 +0000</pubDate>
		<dc:creator>abnormalreturns</dc:creator>
		
		<category><![CDATA[General]]></category>

		<guid isPermaLink="false">http://abnormalreturns.wordpress.com/?p=1285</guid>
		<description><![CDATA[Is it too soon to start calling the company, Sprint Extel (S)?  (WSJ.com)
A hedge fund fight over Sears Holdings (SHLD).  (ChicagoTribune.com, Market Movers)
Google (GOOG) wins this round.  Then again, doesn&#8217;t Google always win?  (DealBook, Bits)
Have commodity funds run too far, too fast?  (WSJ.com)
Ways to play the &#8216;BRIC phenomenon.&#8217;  (FT.com)
A [...]]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p>Is it too soon to start calling the company, <strong>Sprint Extel (<a title="Yahoo! Finance" href="http://finance.yahoo.com/q?s=S" target="_self">S</a>)</strong>?  (<a title="WSJ.com" href="http://online.wsj.com/article/SB121001458454368317.html" target="_self"><em>WSJ.com</em></a>)</p>
<p>A hedge fund fight over <strong>Sears Holdings (<a title="Yahoo! Finance" href="http://finance.yahoo.com/q?s=SHLD" target="_self">SHLD</a>)</strong>.  (<a title="ChicagoTribune.com" href="http://www.chicagotribune.com/business/chi-tue_sears-shareholdermay06,0,1665306.story" target="_self"><em>ChicagoTribune.com</em></a>, <a title="Market Movers" href="http://www.portfolio.com/views/blogs/market-movers/2008/05/06/eddie-lampert-gets-a-taste-of-his-own-medicine" target="_self"><em>Market Movers</em></a>)</p>
<p><strong>Google (<a title="Yahoo! Finance" href="http://finance.yahoo.com/q?s=GOOG" target="_self">GOOG</a>) </strong>wins this round.  Then again, doesn&#8217;t Google always win?  (<a title="DealBook" href="http://dealbook.blogs.nytimes.com/2008/05/06/and-the-winner-isgoogle/" target="_self"><em>DealBook</em></a>, <a title="Bits" href="http://bits.blogs.nytimes.com/2008/05/05/how-googles-checkbook-stymied-microsoft/index.html" target="_self"><em>Bits</em></a>)</p>
<p>Have <strong>commodity funds</strong> run too far, too fast?  (<a title="WSJ.com" href="http://online.wsj.com/article/SB121004226804369793.html" target="_self"><em>WSJ.com</em></a>)</p>
<p>Ways to play the &#8216;<strong>BRIC phenomenon</strong>.&#8217;  (<a title="FT.com" href="http://www.ft.com/cms/s/0/b214a8a8-1b02-11dd-aa67-0000779fd2ac.html" target="_self"><em>FT.com</em></a>)</p>
<p>A big split in global <strong>dividend yield trends</strong>.  (<a title="Capital Spectator" href="http://www.capitalspectator.com/archives/2008/05/yield_analysis.html" target="_self"><em>Capital Spectator</em></a>)</p>
<p><strong>VIX options</strong> &#8220;are thus derivatives of a derivative.&#8221;  (<a title="Daily Options Report" href="http://adamsoptions.blogspot.com/2008/05/vix-o-de-mayo.html" target="_self"><em>Daily Options Report</em></a>)</p>
<p><strong>Shorting puts</strong> as an investment strategy.  (<a title="Crossing Wall Street" href="http://www.crossingwallstreet.com/archives/2008/05/shorting_puts.html" target="_self"><em>Crossing Wall Street</em></a>)</p>
<p>&#8216;<strong>Sell in May</strong>&#8216; may not be all that great an axiom.  (<a title="Minyanville.com" href="http://www.minyanville.com/articles/index.php?a=17024" target="_self"><em>Minyanville.com</em></a>, <a title="Dash of Insight" href="http://oldprof.typepad.com/a_dash_of_insight/2008/05/sell-in-may.html" target="_self"><em>Dash of Insight</em></a>)</p>
<p>Some <strong>CLO deals</strong> are getting closed.  (<a title="Marketwatch.com" href="http://www.marketwatch.com/news/story/story.aspx?guid=%7B7001DFC3%2DE031%2D41FC%2D926E%2D2E8C1630C783%7D" target="_self"><em>Marketwatch.com</em></a>)</p>
<p><strong>Investment banks</strong> should not buy hedge funds.  (<a title="Prince of Wall Street" href="http://www.princeofwallstreet.com/2008/05/06/investment-banks-should-not-buy-hedge-funds/" target="_self"><em>Prince of Wall Street</em></a>)</p>
<p><strong>Cash levels</strong> at hedge funds remain elevated.  (<a title="WSJ.com" href="http://online.wsj.com/article/SB121004287774669889.html" target="_self"><em>WSJ.com</em></a>)</p>
<p>A better <strong>definition of liquidity</strong>.  (<a title="Aleph Blog" href="http://alephblog.com/2008/05/06/what-is-liquidity-part-ii/" target="_self"><em>Aleph Blog</em></a>)</p>
<p>Tips on building a simple or &#8216;<strong>lazy portfolio</strong>.&#8217;  (<a title="Morningstar.com" href="http://news.morningstar.com/articlenet/article.aspx?id=237022" target="_self"><em>Morningstar.com</em></a>)</p>
<p>&#8220;<strong>Performance improvement</strong> often occurs in small, continuous steps forward.&#8221;  (<a title="TraderFeed" href="http://traderfeed.blogspot.com/2008/05/perspectives-on-achieving-greatness-as.html" target="_self"><em>TraderFeed</em></a>)</p>
<p>&#8220;<strong>Forecasts for the windmill makers</strong> are still too low&#8230;&#8221;  (<a title="LATimes.com" href="http://latimesblogs.latimes.com/money_co/2008/05/the-winds-kicki.html" target="_self"><em>Money &amp; Co.</em></a>)</p>
<p>Can &#8216;<strong>libertarian paternalism </strong>bridge the political divide&#8217;?  (<a title="Chronicle.com" href="http://chronicle.com/temp/reprint.php?id=pwq4w52rk7wg916xkfflm6r43x0h2d5s" target="_self"><em>Chronicle.com</em></a>)</p>
<p><strong>Art purchased on credit </strong>is a different financial animal altogether.  (<a title="Market Movers" href="http://www.portfolio.com/views/blogs/market-movers/2008/05/06/why-sothebys-borrowers-arent-speculators" target="_self"><em>Market Movers</em></a>)</p>
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		<title>Monday links:  emotion and innovation</title>
		<link>http://abnormalreturns.com/2008/05/05/monday-links-emotion-and-innovation/</link>
		<comments>http://abnormalreturns.com/2008/05/05/monday-links-emotion-and-innovation/#comments</comments>
		<pubDate>Mon, 05 May 2008 15:54:38 +0000</pubDate>
		<dc:creator>abnormalreturns</dc:creator>
		
		<category><![CDATA[General]]></category>

		<guid isPermaLink="false">http://abnormalreturns.wordpress.com/?p=1284</guid>
		<description><![CDATA[&#8220;Microsoft will be back.&#8221;  (DealBook)
The pressure on Yahoo! (YHOO) management is going to be intense.  (NYTimes.com, Market Movers)
Select quotes from the &#8220;Capitalist Woodstock.&#8221;  (DealBreaker.com, WSJ.com)
The upshot of a shift away from fund of hedge funds.  (All About Alpha)
&#8220;Confidence is good only when confidence is merited.&#8221;  (Interfluidity also Market Movers)
&#8220;The Bear [...]]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p>&#8220;<strong>Microsoft </strong>will be back.&#8221;  (<a title="DealBook" href="http://dealbook.blogs.nytimes.com/2008/05/04/microhoo-the-end-of-the-beginning/" target="_self"><em>DealBook</em></a>)</p>
<p>The pressure on <strong>Yahoo! (<a title="Yahoo! Finance" href="http://finance.yahoo.com/q?s=YHOO" target="_self">YHOO</a>)</strong> management is going to be intense.  (<a title="NYTimes.com" href="http://www.nytimes.com/2008/05/05/technology/05miller-WEB.html" target="_self"><em>NYTimes.com</em></a>, <a title="Market Movers" href="http://www.portfolio.com/views/blogs/market-movers/2008/05/05/why-yahoo-shouldnt-buy-back-its-own-stock" target="_self"><em>Market Movers</em></a>)</p>
<p>Select quotes from the &#8220;<strong>Capitalist Woodstock</strong>.&#8221;  (<a title="DealBreaker.com" href="http://dealbreaker.com/2008/05/brk_shareholders_gather_to_cel.php" target="_self"><em>DealBreaker.com</em></a>, <a title="WSJ.com" href="http://online.wsj.com/article/SB120990596389565539.html" target="_self"><em>WSJ.com</em></a>)</p>
<p>The upshot of a shift away from <strong>fund of hedge funds</strong>.  (<a title="All About Alpha" href="http://allaboutalpha.com/blog/2008/05/04/does-shift-away-from-funds-of-funds-mean-diversification-is-dead/" target="_self"><em>All About Alpha</em></a>)</p>
<p>&#8220;<strong>Confidence is good</strong> only when confidence is merited.&#8221;  (<a title="Interfluidity" href="http://interfluidity.powerblogs.com/posts/1209978923.shtml" target="_self"><em>Interfluidity</em></a> also <a title="Market Movers" href="http://www.portfolio.com/views/blogs/market-movers/2008/05/05/is-illiquidity-just-another-word-for-uncertainty" target="_self"><em>Market Movers</em></a>)</p>
<p>&#8220;The Bear Stearns bailout may have saved the economy from an episode of financial contagion in the short run, but in the long run it will likely leave us with <strong>a more regulated and less vibrant financial system</strong>.&#8221;  (<a title="Mankiw Blog" href="http://gregmankiw.blogspot.com/2008/05/legacy-of-bailouts.html" target="_self"><em>Mankiw Blog</em></a>)</p>
<p>Investment grade <strong>corporate spreads</strong> have further room to tighten.  (<a title="Accrued Interest" href="http://accruedint.blogspot.com/2008/05/what-are-corporate-bonds-worth-in.html" target="_self"><em>Accrued Interest</em></a>)</p>
<p>How some<strong> recent fund innovations</strong> fared during the recent market cycle.  (<a title="WSJ.com" href="http://online.wsj.com/article/SB120994192945366067.html" target="_self"><em>WSJ.com</em></a>)</p>
<p>Research shows little effect on stock returns and volatility after the <strong>suspension of the uptick rule</strong>.  (<a title="Journal of Finance" href="http://www.afajof.org/afa/forthcoming/4131.pdf" target="_self"><em>Journal of Finance</em></a> <em>- .pdf</em>)</p>
<p><strong>Negative feedback loops </strong>and further risk to the economy.  (<a title="naked capitalism" href="http://www.nakedcapitalism.com/2008/05/mirable-dictu-journal-says-few.html" target="_self"><em>naked captialism</em></a>)</p>
<p>What can you learn from the economics of the <strong>Cowles Commission</strong>.  (<a title="Marginal Revolution" href="http://www.marginalrevolution.com/marginalrevolution/2008/05/what-do-i-think.html" target="_self"><em>Marginal Revolution</em></a>)</p>
<p><strong>Innovation is an incremental process</strong>.  (<a title="NewYorker.com" href="http://www.newyorker.com/talk/financial/2008/05/12/080512ta_talk_surowiecki" target="_self"><em>NewYorker.com</em></a>, <a title="NYTimes.com" href="http://www.nytimes.com/2008/05/04/business/04unbox.html" target="_self"><em>NYTimes.com</em></a>)</p>
<p>&#8220;<strong>Emotions play a large role in our decision making</strong>.&#8221;  (<a title="Predictably Irrational" href="http://www.predictablyirrational.com/?p=235" target="_self"><em>Predictably Irrational</em></a>)</p>
<p>Get to know <strong>investment banking lingo</strong>.  (<a title="Mergers &amp; Inquisitions" href="http://www.mergersandinquisitions.com/2008/05/05/investment-banking-lingo/" target="_self"><em>Mergers &amp; Inquisitions</em></a>)</p>
<p>Is a <strong>rice cartel</strong> in the works?  (<a title="DealBreaker.com" href="http://dealbreaker.com/2008/05/will_food_crisis_give_rise_to.php" target="_self"><em>DealBreaker.com</em></a>)</p>
<p>The <strong>horse racing industry</strong> is &#8220;in crisis.&#8221;  (<a title="WSJ.com" href="http://online.wsj.com/article/SB120994417837766223.html" target="_self"><em>WSJ.com</em></a>)</p>
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