Quote of the day

David Merkel, “Liquidity crises do not happen to governments with low debt levels. ”  (Aleph Blog)

Chart of the day

Individual investors continue to pull money out of cash and into stocks.  (Pragmatic Capitalism)

Markets

Who knew?  The US dollar outperformed other asset classes in November.  (Bloomberg)

Investor sentiment is particularly volatile of late.  (Phil Pearlman)

Preview of a couple of Doug Kass’ surprises for 2011.  (TheStreet)

The monthly charts of gold and oil still look higher.  (Dragonfly Capital)

A visual examination of POMO and the S&P 500.  (Quantifiable Edges)

What to make of some nominal high stock prices?  (Tradestreaming)

Revisiting the uncharacteristically volatile muni bond market going into year-end.  (AR Screencast)

The Chinese can now buy foreign gold ETFs.  Does it matter?  (WSJ, Money Game)

Strategy and Tactics

A closer look at Daniel Loeb’s performance.  (Insider Monkey, Dealbreaker)

Event investing is not one strategy, it is a group of strategies.  (All About Alpha)

Setting better stops.  (SMB Training)

“Your first goal in trading should be to manage drawdowns.”  (stockbee)

Is short-selling fundamentally unfair?  (WashingtonPost)

Google

Can Google (GOOG) carve out a niche in the e-book world?  (WSJ)

Where Groupon fits in the Google-Facebook fight.  (Deal Journal, Fortune Tech, Stone Street)

Can Google successfully integrate Groupon?  Or should it? (Dealbook, SAI)

Economy

Nine unanswered questions about the economy.  (Slate)

Economic data is still constructive.  (Pragmatic Capitalism, Carpe Diem)

The ISM manufacturing index remains in expansion territory.  (Calculated Risk , Crossing Wall Street)

Signs of life in employment and hiring.  (ValuePlays, Carpe Diem, CBP)

On the relationship between miles driven and economic activity.  (Felix Salmon)

Mark Thoma, “We are not going to solve our budget problems with spending cuts alone.”  (CBS MoneyWatch)

What happened to health care spending in 1980?  (Marginal Revolution)

Global

Is China at risk of overheating?  (FT Alphaville, Money Game, Pragmatic Capitalism, Bloomberg)

European crises, Chinese inflation and a flight to the US dollar. (Econbrowser, The Source)

If China steps on the breaks, what happens to commodities?  (FT Alphaville, The Source)

India’s growth continues to surprise to the upside.  (beyondbrics)

Euroland

Michael Pettis, “If Europe doesn’t move quickly, within two or three years it will probably be very difficult, if not impossible, to engineer fiscal union.”  (China Financial Markets also naked capitalism)

What other cards does Europe still have to play?  (WSJ, Bloomberg, Free exchange)

Euro banks are getting a fresh round of stress tests.  (WSJ)

Is the Euro doomed?  (Megan McArdle)

Worth a read

The top seven sites Charles Kirk visits most often.  (Kirk Report)

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