Quote of the week

Wade Slome, “If you are having trouble sleeping, you either are taking too much risk, or do not understand the nature of the risk you are taking.” (Investing Caffeine)

Chart of the week

Shades of 2002 and 2009.  (@jackdamn)

Markets

Stock correlation is at an all-time high.  (Ticker Sense)

Typical sector rotation at work in this market fall.  (StockCharts Blog)

The “dumb money” is extremely bearish.  (The Technical Take)

A look at the VIX future curve.  (CondorOptions)

A look at historical sector P/E ratios.  (Bespoke)

The energy sector is at a key support level.  (chessNwine)

Perspective

Many “angry and fearful” investors have abandoned the stock market for good.  (WSJ)

Howard Lindzon, “Though the S&P is flat for 13 years, I am as fascinated by the markets as ever.”  (Howard Lindzon)

Barry Ritholtz, “And if history holds true, the current secular bear market probably has a few more years to run. It’s a fair guess to say we are in the seventh inning or so.”  (Washington Post)

Strategy

Barron’s tried to restarts an emerging market bandwagon.  (Barron’s, ibid)

David Merkel, “Avoid buying companies that are acquisitive; it is a road to losing money.”  (Aleph Blog)

A look at the hype surrounding the death cross.  (AllETF, Pragmatic Capitalism)

When the market is down it is time to dust off the tax loss harvesting playbook.  (WSJ)

Companies

A nice summary of the tech week that was. (SplatF)

Just how cheap is Oracle ($ORCL)?  (Crossing Wall Street)

By the looks of it Corning ($GLW) looks cheap.  (Barron’s)

John Paulson likely got crushed by the drop in Hewlett-Packard ($HPQ).  (Deal Journal)

Wall Street is tired of HP’s “must have acquisitions.”  (Contrarian Edge also WSJ)

An insider’s look back at the Google ($GOOG) IPO.  (Deal Journal)

The momentum for Google+ is already fading.  (The Reformed Broker)

Finance

A lot of banks are trading below their 2008 levels.  (Economix)

M&A scoops are a tricky business.  (Felix Salmon)

Patents are hot these days, but valuing patents is no easy task.  (WSJ)

Want to get rich(er)?  Join Congress.  (Dealbreaker)

Don’t hold your breath for much market reaction to overseas cash repatriation holiday.  (Musings on Markets)

On the relationship between financial innovation and innovation in the real economy.  (voxEU)

Economy

Why asking what “the chances are of a recession” are is a bad question.  (A Dash of Insight)

Heed the warning of the Philly Fed Index.  (Pragmatic Capitalism)

Are domestic productivity statistics understating the bad news?  (NYTimes)

Rail traffic has flattened out, but has not begun to dip.  (Pragmatic Capitalism)

The North Dakota economic miracle.  (Economix)

How big a problem is labor mobility for the economy?  (Felix Salmon)

Earlier on Abnormal Returns

What you missed in our Saturday long form linkfest.  (Abnormal Returns)

What everyone else was reading this week on Abnormal Returns.  (Abnormal Returns)

Mixed media

Do you suffer from decision fatigue?  (NYTimes also Derek Hernquist)

A positive review of Francoise Trahan’s The Era of Uncertainty.  (Aleph Blog)

Perspectives from two different side of the jobs market.  (WSJ, The Atlantic)

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