Thursday links: no easy answers

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Quote of the day

James Montier, “There are no easy answers to the problem of capital preservation in an age of financial repression, only difficult choices.”  (GMO via Pragmatic Capitalism)

Chart of the day

AMD 1112 Thursday links:  no easy answers

A line in the sand for Advanced Micro Devices ($AMD).  (chessNwine)

Markets

Beware when hedge funds get too bullish.  (Alpha)

The earnings yield for the S&P 500 is now above junk bond yields.  (Humble Student of the Markets)

Special dividends

What’s so special about ‘special dividends‘?  (Barron’s, Bespoke, The Reformed Broker, Crossing Wall Street)

Why Apple ($AAPL) should pay a big, fat special dividend.  (Phil Pearlman, Breakout)

Are special dividends an admission that the prior balance sheet was underleveraged?  (Michael Santoli)

Strategy

Is stock picking just another hobby for men?  (Felix Salmon)

Should investors bypass bonds altogether amidst a ‘bond bubble’?  (Nerd’s Eye View)

There is no ‘silver bullet’ to forming return expectations.  (Capital Spectator)

Lessons from the Hedge Fund Market Wizards: Colm O’Shea.  (Finance Trends Matter)

Research

Why are high beta assets overpriced?  (SSRN)

What broke the ‘Fed model‘?  (Buttonwood)

Can measures of market liquidity help guide asset allocation decision?  (SSRN via @quantivity)

How are debt bubbles different than equity bubbles? They are quieter.  (NBER)

Companies

Save Hewlett Packard ($HPQ) by breaking it in two.  (Dealbook)

Is anyone really buying the Microsoft ($MSFT) Surface tablet?  (Jeff Matthews)

Will Andrew Mason have enough time to turn Groupon ($GRPN) around?  (SAI)

In praise of Barnes & Noble’s ($BKS) Nook.  (SplatF)

What Bill Ackman sees in JC Penney ($JCP).  (SumZero)

ExxonMobil ($XOM) has a problem replacing its oil reserves.  (WSJ)

Finance

What exactly is Knight Capital ($KCG) worth?  (Dealbreaker also Deal Journal)

The struggle over high frequency trading.  (Quartz)

Beware: the non-traded REIT guys are now pushing non-traded BDCs.  (InvestmentNews)

ETFs

How have gold ETFs changed demand for gold miners?  (Institutional Investor also IndexUniverse)

Comparing the Pimco Total Return ETF ($BOND) to its open-end cousin.  (LearnBonds)

The Van Eck Emerging Markets Local Currency Bond ETF ($EMLC) has topped $1 billion in AUM.  (Institutional Investor)

Global equities

The Indian stock market is making a comeback.  (beyondbrics)

Is the compression in Japanese equity valuations finally over?  (AlphaNow)

Chinese stocks trade at 9x 2013 earnings estimates.  (Breakingviews)

Global

Just how big is China’s overinvestment problem?  (FT Alphaville also Quartz)

Emerging markets are on a bond issuance tear, including Mongolia.  (beyondbrics, WSJ)

Is the rise in the Canadian dollar finally coming to an end?  (FT)

The globe’s birth rate is slowing faster than previously projected.  (Aleph Blog)

Economy

The Fed is planning to keep on buying bonds in ’13.  (WSJ also Tim Duy)

A look at the anomalous growth in 3Q GDP.  (Wonkblog, Crossing Wall Street)

Weekly initial claims are still being affected by Hurricane Sandy.  (Calculated Risk)

Temp staffing hit a 5-year high.  (ValuePlays)

Americans will spend a record amount on gasoline in 2012.  (Money & Co.)

Americans are continuing to replace their aging vehicles.  (WSJ)

Startups

Is this the ‘future of machine intelligence‘?  (Bits)

What is going on with music startups?  (GigaOM)

The glut of angel investors is coming home to roost.  (Pando Daily, ibid)

Early stage investors need to recognize that “payback is a bitch.”  (Information Arbitrage)

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