Quote of the day
TED, “The existence and ineluctability of tail risk should teach us two things: radical humility, and the imperative to live life now, while it is still in our grasp.” (The Epicurean Dealmaker)
Chart of the day
The US [and Taiwanese] nuclear industry is now on hold. (NYTimes, FT Alphaville, beyondbrics)
Markets
There is always geopolitical risk, always. (The Reformed Broker)
A huge drop for the iShares MSCI Japan ETF (EWJ). (Bespoke)
On the challenges of analyzing the top holdings of emerging market ETFs. (IndexUniverse)
Is the currency trade getting overcrowded? (All About Alpha)
Long term muni bond issuance is at a standstill for a reason. (Bond Buyer)
Strategy
If you use a price/normalized earnings valuation metric, future returns look bleak. (Value Restoration Project, Hussman Funds)
Are we in the blowoff phase of the commodity bubble? (Pragmatic Capitalism)
On the use of in-the-money calls as a stock substitute. (Options for Rookies)
An interesting interview with Ted Seides of Protege Partners. (Big Picture)
Broken stocks are broken for a reason. (TheArmoTrader)
Companies
When to ignore the shorts. (Herb Greenberg)
Berkshire Hathaway (BRKB) is paying cash for Lubrizol (LZ). (Dealbook, Deal Journal, Crossing Wall Street)
Watch what execs say, not what they do. (footnoted)
Shipping
The Carlyle Group is bottom fishing in shipping assets in Asia. (peHUB)
The Baltic Dry Index is neither a broad market nor shipping market indicator. (Minyanville)
Finance
The SEC saw board director Gupta as an ongoing issue. (NetNet)
Where are the redundancies in the financial system? (Humble Student of the Markets)
Some due diligence tips when it comes to investigating hedge funds. (WSJ)
Insiders leak for a number of reasons besides the potential for profit. (WSJ)
Japan
What happens to JGB rates over the long run? (The Source)
The energy markets are roiled as Japan adjusts. (FT Alphaville)
Two silver linings for Japan’s reconstruction efforts. (Atlantic Business)
Don’t compare the Sendai quake to the Kobe disaster. (FT Alphaville)
Economy
Domestic retail sales are at a new nominal high. (ValuePlays)
The Fed wants to see higher inflation, just not from oil. (Econbrowser)
A FOMC preview. (Calculated Risk)
Emerging markets continue to increase their share of global manufacturing. (beyondbrics)
Earlier on Abnormal Returns
In the wake of the Sendai earthquake markets are sorting through relative sector winners and losers. (AR Screencast)
Our Monday morning live link look-in. (Abnormal Returns)
Mixed media
Sports sentiment and stock returns. (Marketwatch)
Moneyball 2: The rise of the Tampa Bay Rays. (Economix)
Don’t miss out on the StockTwits NCAA Bracket Challenge. (StockTwits)
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