Quote of the day

Carl Richards, “And therein lies the risk of investing based on the Greater Fool Theory: It’s awfully difficult to know when the music will stop.”  (Bucks Blog)

Chart of the day

Exponential growth rate of US stocks since 1871.  (Visualizing Economics)


A look at the TIPS yield curve.  (Crossing Wall Street, BondSquawk)

Jeremy Grantham brings the hammer down on the Fed.  (GMO also Pragmatic Capitalism, Zero Hedge)

Translating Grantham’s recommendations into action. (Money Game, ibid)

Bill Gross says the great bond bull market is over.  (Street Sweep, TRB)

How much more can the market do without the financials?  (Phil Pearlman also Investing With Options)

The Greek crisis moves back to the front burner.  (Big Picture, Money Game)

German companies think their own stocks are too cheap.  (Money Game)

Strategy and Tactics

Why investors, even value investors, need to be aware of the top-down risks in the current steroid-fueled global economy.  (Contrarian Edge)

A seasonality map for November.  (MarketSci Blog)

On the dangers of low commissions and high turnover in trading.  (StockTwitsU)

Is day trading dead?  (Trader Mike, Wall St. Cheat Sheet)

Index investing is getting more complicated.  (Capital Spectator)

Bruce Berkowitz is starting up a go-anywhere fund.  (Businessweek)


How the Flash Crash pushes more investors in ETFs.  (Traders Magazine)

Is there room in the market for two copper-backed ETFs?  (IndexUniverse, WSJ)

Are base metal ETFs a bad deal?  (FT Alphaville, The Source)

If your ETF falls too much, resort to the reverse split!  (Daily Options Report, ibid)

Competition coming to the beta and volatility ETF space.  (ETFdb)

Mind and Markets

Cardano’s gambit in investing terms:  “..analyse the fundamentals, manage you emotional biases and build the best margin of safety you can.”  (The Psy-Fi Blog)

For your own financial sanity, turn off the TV!  (The Reformed Broker)

Why buying momentum stocks can be psychologically difficult.  (Ivanhoff Capital)


How should we read the weak results in basic materials?  (Lex)

Who has pricing power?  (Pragmatic Capitalism)

More on Wal-Mart’s (WMT) bet on sub-Saharan Africa.  (WSJ)

What is next for Microsoft (MSFT) and its “dying consumer brand”?  (Fortune Tech, CNNMoney)

Where would Netflix (NFLX) rank in the S&P 500?  (Bespoke)

Cisco (CSCO) is betting on the growth in online video.  (Fortune Tech)


According to Warren Buffett, Todd Combs is a “100% fit” with the Berkshire culture.  (WSJ also Value Investing, Clusterstock, Dealbook, Market Blog)

Todd Combs may have to slow down his trading to match that of Warren Buffett.  (Deal Journal also Falkenblog)

Is running the Berkshire Hathaway (BRKB) portfolio a lose-lose situation?  (Lex also Atlantic Business)

Would we still be talking about Warren Buffett today if he had run Berkshire like a hedge fund?  (AR Screencast)

Wall Street

Michael Lewis on whether Wall Street really is getting out of the proprietary trading business.  (Bloomberg, Zero Hedge)

The Goldman Sachs (GS) 50-year bond should convince you we are in a bond bubble.  (Mean Street, FT Alphaville)

There will be a solution to the residential mortgage fiasco, but it will be “choppy and messy.”  (Aleph Blog also Humble Student)

Pension fund return expectations are completely out of whack.  (IndexUniverse)


Some greater detail emerges on the size and shape of QE2.  (WSJ, Free exchange)

Karl Smith, “The Fed should promise inflation. The whiteboard says it should work. The markets seem to be acting as if it is will work. Maybe it is working?”  (Modeled Behavior also Marketwatch)

“What message should we take from negative real interest rates?”  (Econbrowser, Slate)

Does monetary easing inflate asset bubbles?  (Money Game)

Truck tonnage has “leveled off.”  (Calculated Risk)

Just Because

Using Twitter be used to track infectious diseases.  (The Atlantic)

Want to eat junk fund?  Pay cash.  (Real Time Economics)

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