Quote of the day

Courtney Comstock, “So we know Bridgewater is killing it this year, but have absolutely no idea how they’re doing it.”  (Clusterstock also Dealbreaker)


You’ll know the rally has gone too far when you start seeing “shoddy Asian IPOs.”  (Bloomberg, Money Game, WSJ, Barron’s)

A stunning turnaround in the amount pension funds allocate towards equities.  (WSJ)

Just as things got too bearish in late August, expectations about QE2 may be getting traders a tad too bullish.  (AR Screencast)

Market valuations provide room for an upside surprise.  (ValuePlays also Big Picture)

The spread between the 10-year and 30-year Treasury bond has hit a record.  (Crossing Wall Street)

Dividend stocks are riskier than you think.  (Money Game)

How the Fed may be facilitating a bubble in the emerging markets.  (FT)

Breaking down the “bubble” in emerging market bonds.  (Barron’s)

Tough times for short-sellers in a world filled with M&A activity.  (The Reformed Broker)

How have momentum funds done of late?  (Insider Monkey)

Why financial television glosses over midcap stocks.  (The Reformed Broker)

Strategy and Tactics

How hedge fund ownership affects a stock’s liquidity risk.  (All About Alpha)

Claims that ‘stock picking is dead‘ are great for value investors.  (Market Folly)

Pattern recognition and the long history of technical analysis.  (FT)

More on building a tactical asset allocation model.  (MarketSci Blog)

What are “asymmetric volatility expectations”? The case of Google (GOOG). (VIX and More also Bespoke)


There is a big spread between what bloggers and analysts are forecasting for Apple (AAPL) quarterly earnings.  (Apple 2.0, ibid)

The case for CME Group (CME).  (Points and Figures also WSJ)

Why analysts are cautious on Netflix (NFLX).  (Bloomberg)

Mind and Markets

In trading don’t confuse activity with accomplishment.  (Chicago Sean)

Justin Fox, “So why haven’t finance academics and practitioners paid more attention to Mandelbrot’s warnings?”  (Reuters)

Wall Street

Securities lending from the bank’s perspective: heads I win, tails you lose.  (NYTimes, Big Picture)

How the state of the commercial real estate market represents “tranche warfare.”  (The Reformed Broker)

The ways in which Goldman Sachs (GS) is a cult.  (naked capitalism also WSJ)

More municipal defaults are coming.  (Lex)


“..if anyone tells you they have a clear view on what is going to happen to the econo-world from here, walk away briskly.”  (Ultimi Barbarorum)

Bill Hester, “If we use Japan as a template, it’s difficult to be optimistic about quantitative easing providing meaningful stimulus to the economy.”  (Hussman Funds)

“This is a Fed Chairman who is very dissatisfied with the depressed state of the US economy, and who is not afraid to say so.”  (Gavyn Davies, FT)

What are higher commodity prices telling us?  (Buttonwood)

What is the Fed going to try and accomplish with QE2?  (Econbrowser also Modeled Behavior)

Industrial production and capacity utilization come in below expectations.  (Calculated Risk, Pragmatic Capitalism, Economic Intersection)

Canada is poised to put on pause its monetary tightening.  (The Globe and Mail)


How much is foreclosure-gate going to cost the big banks?  (Curious Capitalist)

A mortgage bond scandal FAQ.  (Felix Salmon)


Why Groupon is no eBay (EBAY).  (TechCrunch)

How many operating systems can the smartphone market support?  (NYTimes)

Market share vs. profit share:  which matters more?  (Asymco)

There is no shortage of demand for shares in hot, private companies like Facebook and Twitter.  (WSJ)

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