Quote of the day
Bethany McLean, “The ratings agencies would like you to believe that the source of their power is the accuracy of their opinions. But in fact, its true source is the extent to which their ratings have been embedded in various rules and regulations across the financial world.” (Slate)
Chart of the day
How Treasury yields have led the stock market in 2011. (Afraid to Trade)
Markets
A really stunning drop in long Treasury yields. (SurlyTrader)
More indications of an oversold market. (Bespoke, ibid)
The S&P 500 is trading at a 21-year P/E low. (Crossing Wall Street)
Spread trading made easy. (Focus on Funds, The Reformed Broker)
Gold vs. oil: the tale of the past decade. (research puzzle pix)
Why the stock market fell after the debt deal closed. (Econbrowser)
Strategy
Double dips are rare. Time to invest. (ValuePlays)
A President desperate for job growth is a good thing for the stock market. (Mean Street)
Keep an eye on any bounce that happens from here. (Big Picture)
What happens when traders go ‘on tilt.’ (Phil Pearlman)
Research
Nobody really knows what the equity risk premium is, but they do know it is lower. (CXO Advisory Group)
How well does the “magic formula” do in real-time? (CXO Advisory Group)
Formulating a better buyback trading strategy. (Empirical Finance Blog)
Companies
Amazon ($AMZN) is obsessed with its sales-tax free status. (WSJ)
Reasons why Apple ($AAPL) should merge iOS and OS X. (The Tech Trade)
Why companies like Emerson Electric ($EMR) are reluctant to invest in the US. (Jeff Matthews)
Honda Motor ($HMC) has a whole mess of problems. (Fortune)
McGraw-Hill ($MHP) looks like it might be the next conglomerate to go by the wayside. (Institutional Investor, peHUB)
CBS ($CBS) stock is up 10x in past two years. (24/7 Wall St., AllThingsD)
Finance
Bond investors are concerned Jon Corzine might leave MF Global ($MF) for public service. (Bloomberg, Clusterstock)
It takes one to know one. Who the SEC needs to hire to regulate the financial industry. (Epicurean Dealmaker)
Where are all the hedge fund activists hiding? (Deal Journal)
Global
Why you should keep an eye on the Shanghai Composite as a leading indicator. (Bonddad Blog)
The advantages (and disadvantages) of the so-called S3 currencies (Swiss, Aussie, Canada). (FT)
Brazil has come a long way economically, but conditions are deteriorating. (FT, WSJ)
Seasonality in the Mongolian stock market. (FT Tilt)
Economy
On the road to “Headcount Zero.” (The Reformed Broker)
The lost decade as a function of higher energy prices. (Gregor Macdonald)
Coincident economic indicators are rolling over. (Economic Musings)
The ISM non-manufacturing index continues to slow. (Calculated Risk)
What a drop in core inflation means for the US economy. (Gavyn Davies)
The Fed could prevent a double-dip, but is likely on the sidelines. (Free exchange, Capital Spectator)
Forget the “Great Recession” think “Great Contraction.” (Project Syndicate)
Don’t bet just yet against the US as superpower. (Daniel Drezner)
Earlier on Abnormal Returns
What you missed in our Wednesday morning linkfest. (Abnormal Returns)
Mixed media
Companies desperately want to reach new investors. (IR Web Report)
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