Quote of the day

Brenda Jubin, “Financial models change over time to reflect changing economic conditions and increasing financial sophistication, but their correctness is always uncertain and this uncertainty is much vaguer than probabilistic risk.”  (Reading the Markets)

Markets

The challenge of investing is weighing contradictory evidence, in short the “best and worst of times.”  (TheStreet)

James Picerno, “The era of securitizing unconventional betas has only just begun.”  (Capital Spectator)

Barton Biggs on the brewing emerging markets bubble.  (Bloomberg)

Companies with international revenues have dominated this market.  (Bespoke)

Odd divergences in the term structures for VIX futures and SPX options.  (Don Fishback)

There are ways to measure volatility other than the VIX.  (Dragonfly Capital)

Why do high risk stocks underperform?  (Falkenblog)

Be careful of analysts trying to spin stories based on limited political data.  (A Dash of Insight, FT Alphaville)

Markets and the media react very differently to the news.  (Free exchange)

Strategy and Tactics

How one hedge fund manager managed to change his primary investment strategy.  (WSJ)

How technology has made hedge funds nearly irrelevant.  (Leigh Drogen)

Using pairs trades in a toppy market.  (Dynamic Hedge)

There is “so much more to making money in the markets other than the system.”  (Investing With Options)

Part 2 of an interview with Buffett biographer Alice Schroeder.  (Simoleon Sense)

Some rediscovered writings from Ben Graham.  (ValueHuntr)

On the benefits of being an independent trader.  (StockTwitsU)

Companies

The muni bond insurance business is dying.  (Fortune Finance)

One thing Apple (AAPL) can’t do is earn much on their cash balances.  (Bloomberg)

China is the new frontier for Apple sales.  (Bloomberg)

Is the sell-off in 3M (MMM) overdone?  (YCharts Blog)

Wall Street

Round 2.  The SEC is investigating another CDO deal, this time with JP Morgan (JPM).  (ProPublica, TRB)

The US is getting out of the car business via a GM IPO.  (Bloomberg, WSJ)

Is it time to update 13-D rules?  (Dealbook)

Economy

Real asset prices matter.  (Pragmatic Capitalism, Infectious Greed, Big Picture)

Manufacturing data suggests a stronger global economy.  (Gavyn Davies, Real Time Economics)

The sky isn’t falling…yet.  (Daniel Gross)

The Fed can affect real interest rates, but will it affect consumer behavior?  (Economist’s View, Atlantic Business also The Source)

In contrast to the US, the Australian central bank is raising interest rates to head off inflation.  (AR Screencast)

It is going to cost more to ship stuff around the world.  (DailyFinance, Floyd Norris)

Why won’t the ECB let the Euro fall?  (Money Game)

Econoblogosphere

If you are taking the time to write a long blog comment, you should have your own blog.  (Aleph Blog)

“These ARE the financial blogs you are looking for…”  (The Reformed Broker)

Howard has been blogging for six years.  Somehow the Internet is still standing.  (Howard Lindzon)

Just Because

Fans rejoice. The McRib is back.  (LATimes)

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