David Swensen of Yale fame sees “extraordinary opportunities” in distressed debt.  (Bloomberg.com)

“If you are looking for safety, cash is still very much your friend.”  (Market Movers also Clusterstock)

The odds point to an up January.  (Ticker Sense also Curious Capitalist)

Sector leadership tells us what kind of market we are in.  (Barrons.com)

Some mutual funds that were down a ‘dubious’ 60% for 2008.  (WSJ.com)

Even Berkshire Hathaway could not escape the downdraft in 2008.  (Telegraph.co.uk)

Hints that risk appetites are rising.  (TraderFeed)

The worst footnote of 2008 is a doozy.  (footnoted.org)

Value creators can still make money in this environment.  (A VC)

Five ideas for 2009.  (World Beta)

“Volatility has gotten smacked around in a big way.”  (Daily Options Report)

The 2008 Volatility Awards.  (VIX and More)

“For traders (and humans generally), the salient point here is that being a successful agent has much more to do with creating the conditions for success than with “conscious” decision-making.”  (Condor Options)

What the ‘doomsayers‘ see for the economy and markets in 2009.  (WSJ.com)

Some eerie parallels via Google Trends.  (Infectious Greed)

The difference between a recession and a depression.  (Crossing Wall Street)

Trade finance is collapsing.  (Econbrowser)

Expect a pick-up in protectionist rhetoric.  (Daniel Drezner)

Should the Fed target asset prices directly?  (FT.com also Economist’s View, ibid)

Times are tough.  Race horse prices are down some 40%.  (Clusterstock)

“What game-changing scientific ideas and developments do you expect to live to see?”  (Edge.org)

Have we missed an interesting post in the investment blogosphere? If so, feel free to drop Abnormal Returns a line.