Quote of the day

Michael Pettis, “If the renminbi ever becomes a major trading or reserve currency, it is going to take a long time for this to happen and will require a radical transformation of the Chinese economy and the role of the government. ”  (China Financial Markets)


The market is facing some important milestones in the next week.  (TheStreet, Money Game, Pragmatic Capitalism)

The Treasury issues TIPS with a negative yield.  (Bloomberg, WSJ, Free exchange, Marginal Revolution)

52-week highs by sector.  (Bespoke, ibid)

Using Warren Buffett’s favorite valuation indicator stocks are modestly overvalued.  (Pragmatic Capitalism)

Hard to see how bonds win in a race with stocks.  (SurlyTrader)

Investors have bid up the junkiest of junk bonds.  (EconomPic Data)

Warren Buffett has hired Todd Combs to manage a “significant portion” of the Berkshire Hathaway (BRKB) portfolio.  (Fortune, WSJ, Street Capitalist, Market Folly, Insider Monkey, 24/7 Wall St.)

The majority of investors still don’t know much about ETFs.  (IndexUniverse)

Just in case you need some equal weighted ETFs. (IndexUniverse)

Demand is high for the diversification benefits of local currency emerging market debt.  (FT Alphaville)


The VIX is back to pre-Flash Crash levels.  (InvestorPlace)

Can you actually trade the VIX?  Kinda, sorta.  (Investing With Options)

Everything you wanted to know about the VIX complex, but were afraid to ask.  (VIX and More)

Strategy and Tactics

Michael Stokes, “..even the best strategy goes through long rough patches that might not be apparent from 30,000 feet.”  (MarketSci Blog)

Market bottoms are events.   They happen in a day or two.  Tops, on the other hand, take a while to play out.”  (Dynamic Hedge)

Dennis Gartman, “Why would you ever add to a losing trade?”  (The Crosshairs Trader)

The Cambria Global Tactical ETF (GTAA) launches today.  (IndexUniverse, ETFdb)

All that matters is the “returns you can eat.”  (World Beta)

Seven tips for using stop loss orders.  (StockTwitsU)

Hard not look like a genius in a bull market.  The case of Pimco.  (Investing Caffeine via TRB)


Why companies like IBM (IBM) are likely to continue buy back shares.  (AR Screencast)

Why are steel company results weak?  (Money Game)

Ford (F) keeps on cruising.  (Crossing Wall Street)

Amazon (AMZN) is overvalued and struggling to increase profit margins.  (YCharts Blog)

Should Apple (AAPL) buy Netflix (NFLX)?  (Deal Journal)

Wall Street

John Carney, “Why are institutional investors increasingly purchasing proxy advisory advice?’  (NetNet)

Do you really want to lend Goldman Sachs (GS) money for 50 years?  (WSJ)

Treasury hid AIG (AIG) losses.  (NYTimes, Big Picture, Zero Hedge)

Delhi needs the Coal India IPO to trade well.  (Lex)


More signs of weakness in home prices courtesy of Case-Shiller.  (The Reformed Broker, Calculated Risk, Free exchange, FT Alphaville)

A handful of signs of economic recovery.  (Money Game, CNNMoney, MarketBeat)

Econobloggers are pretty gloomy on the economy.  (Kauffman Foundation)

The Fed is venturing (once again) into uncharted territory.  (Bloomberg, ibid)

How the German economy is different.  Hint, trade.  (Free exchange)

Just Because

What is the #1 reason start-ups fail?  (Information Arbitrage )

RIP, Macbook Pro.  Viva la Macbook Air.  (TechCrunch)

How does hiring Motley Crue help the Gulf recovery effort?  (CNNMoney)

Why is pro hockey performing so well in a bum economy?  (The Atlantic)

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