Quote of the day

“Models have their place in proper risk management processes but solely blaming them when trouble strikes occurs is, at best, ignorance.”  (The Psy-Fi Blog)

Chart of the day

Long term real growth in US GDP from 1871.  (Visualizing Economics)


A Dow Theory buy signal awaits.  (The Reformed Broker)

Cyclicals remain elevated relative to the rest of the market.  (Crossing Wall Street)

How long can the S&P 500 ignore the rise in the VIX?  (FT Alphaville, Pragmatic Capitalism, Daily Options Report)

What happens after an oil golden cross?  (Bespoke also Money Game)

Record high sugar prices may be here to stay.  (The Source)

One measure of investor sentiment remains below Spring highs.  (Bespoke)

Making the valuation case for emerging markets.  (Money Game also Bespoke)

Are we out of ETF ideas?  (ETFdb)

Strategy and Tactics

Leigh Drogen, “One aspect of my strategy that I believe is very important, is that I manage risk more tightly as the trend progresses.”  (Leigh Drogen)

In the search for yield many investors have things backwards.  (A Dash of Insight)

The value of stock replacement strategies.  (SurlyTrader)

Will adding quantitative factors enhance socially responsible investment returns?  (WSJ)

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

Mind and Markets

How a belief in mean reversion leads many traders astray.  (Phil Pearlman)

Co-fund managers that need to agree on each stock pick.  (WSJ)

After good (or bad) events, people forget how they thought they would feel.  (Farnam Street)

Wall Street

Eli Radke, “The biggest change from the past is that the major American exchanges are now corporations.  Their motivation is to profit, they do this by increasing volume. ”  (Stone Street Advisors)

CNBC ratings continue to fall and the death of retail trading.  (Street Insider via Behind the Headlines)

Have bank investors overreacted to the mortgage mess?  (Street Sweep)

Why Wall Street abandoned partnerships, a history.  (NetNet)

GM will be able to retain its loss carryforwards for tax purposes.  (WSJ also NYTimes, Atlantic Business, WashingtonPost)


Why tech investors should care about what is happening in the venture capital (and start-up) world.  (AR Screencast)

Is Netflix (NFLX) going to break the Internet?  (Slate)


ISM Non-manufacturing data supports further economic growth, but does it matter for the stock market?  (Calculated Risk, Atlantic Business also CXO Advisory Group)

ADP shows a rise in employment.  (Calculated Risk, Bloomberg)

Corporate downsizing is essentially over.  (Calafia Beach Pundit)

When are the issues in the PIIGs going to matter again?  (FT Alphaville also Free exchange)

Hong Kong is an odd market because thanks to the USD peg it is basically a China fundamentals story powered by USD liquidity dynamics. ”  (Macro Man)

The Australian central bank has no simple task in trying to slow the housing bubble.  (Lex, The Source)

India is rapidly running out of unused arable land.  (Gregor Macdonald)

A QE2 Q&A.  (Real Time Economics)

Does the Fed really know what it is doing?  (Aleph Blog)

Bob Rubin:  not helpful on many counts.  (Felix Salmon, Big Picture)

Just because

Al Pacino is set to star in a new financial thriller ‘Arbitrage.’  (Variety)

Thanks for checking in with Abnormal Returns. For all the latest you can follow us on StockTwits and Twitter.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.