Quote of the day
TZL, “Averaging down is psychologically easy, and feels good. The market tends not to reward behavior that feels good and easy.” (The Zikomo Letter)
Chart of the day
The story behind the rally in AOL ($AOL) year-to-date. (Businessweek, 24/7 Wall St.)
Markets
Gold bulls are feeling it. (Mark Hulbert)
Investor attitudes towards bonds and stocks have flip-flopped. (Sober Look)
Just how good a bond prognosticator is Warren Buffett? (Learn Bonds)
Should dividend investors worry about changing tax rates? (Horan Capital)
Strategy
Recent research on the performance of risk parity strategies. (Capital Spectator)
On building a better “permanent portfolio.” (dshort)
Psychology
A clever trick for traders before taking a trade. (Adam Grimes)
Why happy people make terrible traders. (The Psy-Fi Blog)
Don’t let price anchoring fool you. (Carl Richards)
Investing
How much is your time worth? On the use of cloud-based advisers. (Turnkey Analyst)
Five types of investors who deserve to lose everything. (Brian Lund)
A rave review for Ludwig B. Chincarini’s The Crisis of Crowding: Quant Copycats, Ugly Models and the New Crash Normal. (Aleph Blog)
Companies
What the market is getting right about Apple ($AAPL) and Facebook ($FB). (WSJ)
Amazon Web Services represents a huge change in the way companies are built. (NYTimes)
Why you should avoid Manchester United ($MANU). (SumZero also market folly)
Expect more special dividends this year. (SmartMoney)
Finance
High frequency traders get all sorts of data ahead of you. (MarketBeat)
Do we really want companies providing estimates during the IPO quiet period? (Dealbreaker)
Morgan Stanley ($MS), Citigroup ($C) and the future of retail brokerage. (Bloomberg)
A profile of the other investing Einhorns. (Dealbook)
ETFs
The new and improved WisdomTree Europe Hedged Equity Fund ($HEDJ) is coming. (IndexUniverse)
A sign of just how popular ETFs are becoming. (Invest With an Edge)
ETFs these days need a longer time to garner sufficient assets. (ETFdb)
Global
Seven questions now that Europe is back from vacation. (NYTimes)
Portugese bonds outyield both Spain and Italy. (Sober Look)
One of these days China will have to deal with its non-performing loans problem. (FT Alphaville)
The case for a weaker Australian dollar. (FT Alphaville)
Economy
Case-Shiller shows a jump in home prices. (Calculated Risk, Bonddad Blog, CBP)
In defense of our future robot-based economy. (FT Alphaville)
The recession has pushed many unemployed onto disability. (Political Calculations)
On what economic matters do Republicans and Democrats agree. (Economix)
Econo-geeks rejoice! The official FRED app is here. (Big Picture)
Earlier on Abnormal Returns
What you missed in our Tuesday morning linkfest. (Abnormal Returns)
Health
In defense of sitting. (Fast Company)
In defense of eggs. (The Atlantic)
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