Quote of the day

David Merkel, “Asset returns are not what the financial planners tell you. Asset returns are lumpy. They are feast and famine, with more feast than famine, but with enough famine scare a lot of people away. The good returns come when most are scared, and think the market is rigged.”  (Aleph Blog)

Chart of the day

EWW Total Return Price data by YCharts

The Mexican stock market has quietly been leading the global markets higher.  (Sizemore Insights)

Markets

New highs-new lows are not confirming new market highs.  (The Reformed Broker)

A look at the Drudge Report Headline Indicator.  (Bespoke)

A look at the reasons behind a surge in gasoline prices.  (WSJ)

Strategy

Ten high conviction picks from the “ultimate stock pickers.”  (Morningstar)

Remembering real volatility: a look back at the late 90s.  (Brian Lund)

A shakedown of the Permanent Portfolio strategy.  (dshort)

Research

Evidence of seasonal asset allocation based on fund flows.  (EFA via @quantivity)

“Mean-variance investing is all about diversification.”  (SSRN via @quantivity)

A paper that examines the source of Warren Buffett’s alpha.  (AQR via Dealbreaker)

What is the dividend month effect?  (EFA via @quantivity)

Companies

Why Nike ($NKE) is a sell.  (Crossing Wall Street)

How Netflix ($NLFX) and Microsoft ($MSFT) both lost their way.  (HBR also Fast Company)

What Facebook ($FB) is focusing on now.  (NYTimes)

Of course VCs are selling Facebook, that is their job.  (A VC)

Apple

What investors need to know about Apple ($AAPL).  (Brett Arends)

A look at Apple options implied volatility.  (Tyler’s Trading)

Finance

What a new and improved Libor might look like.  (WSJ)

Health care companies are betting on business as usual.  (Dealbook)

Why banks still waiting 25 days to issue research reports on IPOs.  (WSJ)

ETFs

Were factor ETFs too complicated for the retail audience?  (Total Return)

A “new wrinkle” on the MLP ETF theme.  (IndexUniverse)

Can actively managed ETFs bail out the big mutual fund firms?  (InvestmentNews)

Are ETF investors different than the rest of investors?  (Ari Weinberg)

Economy

The Philly Fed State Coincident Index is showing some weakness.  (Calculated Risk)

The chances of QE3 are fading in the rear view mirror. (Tim Duy)

Earlier on Abnormal Returns

The agony of waiting (for a perfect trade setup).  (Abnormal Returns)

What you missed in our Tuesday morning linkfest.  (Abnormal Returns)

Mixed media

Why CNNMoney matters.  (24/7 Wall St.)

How to deal with your credit card company.  (Crossing Wall Street)

Why restaurants are getting transparent with open kitchen plans.  (Time)

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