Quote of the day

James Hamilton, “(T)he recent rise in yields makes it clear that any effects of QE2 on long-term interest rates, …are easily swamped by other changing factors that also matter for yields.”  (Econbrowser)

Chart of the day

“Almost 85% of all S&P500 stocks are trading above their 200-day Moving Average, pummeling the bears.”  (jackdamn)

Markets

The stock market is really overbought.  (Bespoke)

Small cap stocks have been killing it in 2010.  (NYTimes)

The energy and consumer discretionary sectors remain in a strong uptrend.  (Dragonfly Capital)

The S&P 500 P/E ratio is plumbing the lows of the past two decades.  (Chart of the Day)

A look at some financial stress indices two years removed from the financial crisis.  (Carpe Diem)

The case against gold.  (Globe and Mail also SurlyTrader)

The current stock market rally is working out for the powers that be.  (Pension Pulse, Curtis Faith)

Strategy and Tactics

David Rosenberg’s ten themes for 2011.  (Pragmatic Capitalism)

Reviewing Richard Bernstein’s 11 themes for 2011.  (Fundmastery Blog)

What happens if the bond bubble bursts?  (ROI)

“How StockTwits helped me last week.”  (Joe Fahmy)

Harvesting tax losses is not always a no-brainer.  (Intelligent Investor)

The state of the estate tax. (WSJ, WashingtonPost)

Companies

Corporations that set out to re-invent themselves often fail to do so.  (The Psy-Fi Blog)

Fred Wilson, “If there is any certainty in the tech business, it is things are going to change.”  (A VC)

The love, mostly hate, relationship between restaurants and OpenTable (OPEN).  (NYTimes)

Finance

Are exchange-traded funds good or bad for the market?  (Rajiv Sethi)

We talk ETFs with Matt Hougan of IndexUniverse on ARTV. (Abnormal Returns)

Anticipating a (modest) M&A recovery.  (Dealbook)

Bank dividends have nowhere to go but up.  (Deal Journal)

The big banks still “rule the derivatives trade.”  (NYTimes)

Build America Bonds are likely dead.  (Bond Buyer also Bloomberg)

Economy

The recession was not only a “mancession” but was also a “youngcession” as well.  (Rortybomb also NYTimes)

An examination of the factors that drove global equity prices amidst the financial crisis.  (voxEU via Economist’s View)

The “remarkable” rise in used car prices.  (Calafia Beach Pundit)

Broadband funding as stimulus.  (Newsweek)

Germany is apparently willing to pay the price needed to save the Euro.  (WSJ)

Worth a read

Reviewing John Maynard Kenyes‘ record as an investor.  (Can Turtles Fly?)

Yves Smith on Harry Shearer’s Le Show.  (Big Picture)

Top clicks this week on Abnormal Returns.  (Abnormal Returns)

Just because

Coming soon to a McDonald’s in the Czech Republic the “Wall Street beef.”  (Eater NY via kottke)

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