Friday links: human love of narrative

Quote of the day

Barry Ritholtz, “The human love of narrative is a dangerous cognitive failing that constantly leads investors astray.”  (Bloomberg View)

Chart of the day

XLKXLU 0414 624x372 Friday links:  human love of narrative

Sector rotation visualized.  (StockCharts Blog)

Markets

The IPO market has cooled.  (WSJ)

Risk off behavior illustrated.  (Howard Lindzon, Herb Greenberg)

The market is rewarding quality over momentum.  (SL Advisors also Alliance Bernstein)

Price compression happens.  (Pragmatic Capitalism)

Strategy

Most investors have no idea what they are doing.  (Marketwatch)

An introduction to the momentum ‘anomaly.’  (Capital Spectator)

Why sell-side analyst estimates matter: social anchoring.  (Turnkey Analyst)

Companies

Internet ad spending has now surpassed broadcast television.  (FT)

Whole Foods ($WFM) wants to get into the delivery business.  (Buzzfeed Business)

How the American Airlines ($AAL) bankruptcy played out.  (Fortune)

HFT

On the ‘dead weight costs” of high-frequency trading.  (Floyd Norris)

The outrage over HFT is displaced anger.  (Math Babe via @ritholtz)

A happy ending for Flash Boys: A Wall Street Revolt would be increased regulatory scrutiny of HFT.  (James Stewart)

Fidelity and other buyside firms are exploring starting their own stock trading venue.  (WSJ, FT)

Finance

A review of the JP Morgan ($JPM) 2013 annual report.  (The Brooklyn Investor)

Foreign companies are rushing to issue dollar-denominated bonds.  (FT)

Why investors are pouring money into Greek bonds.  (Dealbook)

ETFs

A deep dive into Build America Bond ETFs.  (ETF)

ETF statistics for March 2014.  (Invest with an Edge)

Alternative funds are tough to benchmark.  (Mutual Fund Wire via Focus on Funds)

Global

Finland is at risk of losing its AAA rating.  (FT)

Why is Japan hiking consumption taxes?  (Business Insider)

Checking in on the Fragile Five after the EM rally.  (Real Time Economics)

Economy

Investors want to see increased capital expenditures.  (Pragmatic Capitalism)

Is the jobs market finally perking up?  (The Atlantic)

Is it time to stop subsidizing solar energy?  (Pando Daily)

Deli meat prices are surging.  (Real Time Economics)

Earlier on Abnormal Returns

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

Analysts

The “perfect” candidates applying for jobs on Wall Street are generally pretty boring.  (The Epicurean Dealmaker)

Hubris is still alive on Wall Street. A review of Kevin Roose’s Young Money: Inside the Hidden World of Wall Street’s Post-Crash Recruits.  (NYTimes)

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