Monday links: misestimated correlations

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

HYG 0612 624x303 Monday links:  misestimated correlations

Are high yield bond spreads now at attractive levels?  (Total Return, Income Investing)


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)


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)


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.)


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)


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)


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)


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)

Abnormal Returns is a founding member of the StockTwits Blog Network.

Abnormal Returns is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to If you click on my links and buy anything, even something other than the product advertised, I earn a small commission, yet you don't pay any extra. Thank you for your support.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
  • Tadas ViskantaAbnormal Returns has over its seven-year life become a fixture in the financial blogosphere. Over thousands of posts we have striven to bring the best of the financial blogosphere to readers. In that time the idea of a “forecast-free investment blog” remains as useful as it did six years ago. More »

  • StockTwits Follow Abnormal Returns on StockTwits Follow Abnormal Returns on Twitter Follow StockTwits on Facebook Subscribe to Abnormal Returns RSS via Email Subscribe to Abnormal Returns RSS
  • Recent Posts

  • Archives

  • Join StockTwits
  • Get Updates!

    100% Privacy. We don't spam.