Quote of the day
Tim Harford, “Professional pundits are not usually paid to make correct forecasts. They are paid to sound convincing, whether they are columnists or figureheads for asset managers.” (FT)
Chart of the day
The percentage of stocks trading above their 50 day moving average. (Fireside Charts)
Markets
Market sentiment is decidedly mixed. (The Technical Take)
Short Euro is looking like a crowded trade. (Money Game)
What a reduction in financial risk measures means for investors. (A Dash of Insight)
Perspective
Ten things investors would like to find under their trees this holiday season. (WashingtonPost)
On the advantages individual investors have over institutional investors. (Big Picture)
James Picerno, “Some hazards in finance (and life) simply aren’t subject to quantification.” (Capital Spectator)
Henry Blodget, “(I)f you want to invest intelligently, the first thing you should do is ignore 99.9% of what you hear in the financial media.”
(Business Insider)
Strategy
What is factor investing? (WSJ, ibid)
Some resolutions on taking a more minimalist approach to trading. (Stock Sage)
The simple question you need to ask when analyzing market-related policy news. (A Dash of Insight)
On the difference between classic value investors and Buffett-style investors. (Can Turtles Fly?)
Correlation does not equal causation, redux. (ETF Replay)
Companies
How about a new business model for TheStreet.com ($TST). (World Beta)
Google ($GOOG) and Apple ($AAPL) have very different visions for the future of television. (SAI)
Finance
On the consequences of ZIRP on corporate balance sheets. (The Reformed Broker)
Why muni investors shouldn’t get too worked up about Jefferson County, Alabama. (Felix Salmon also The Reformed Broker)
Funds
Walter Kurtz, “Success in asset management is as much about personalities as it is about performance.” The case of Bill Gross. (Sober Look)
Everybody window dresses, everybody. (WSJ)
Some funds that likely deserved to die in 2011. (Marketwatch)
A look back at the year in $VIX-related ETPs. (VIX and More)
Vanguard cuts fees on its sector ETFs. (IndexUniverse)
Global
Brazil is now the sixth largest country by GDP. (beyondbrics)
The protest movement in Russia seems to be gaining steam. (FT)
Economy
The Fed as a bulwark against another financial crisis. (NYTimes also Marginal Revolution)
How is it that the US became a net exporter of petroleum products in 2011. (Econbrowser)
Why use Intrade to predict the Presidential election when you can just use the S&P 500? (Sober Look)
Falling home prices are just starting to run through the property tax system. (WashingtonPost)
The economic schedule for the coming week. (Calculated Risk)
Earlier on Abnormal Returns
What you missed in our Saturday long form linkfest. (Abnormal Returns)
Top clicks this week on Abnormal Returns. (Abnormal Returns)
Mixed media
Three ways the “wisdom of crowds” is undermined. (HistorySquared)
Bob Lefsetz, “My mother wants an iPhone.” (Big Picture)
Bourbon is experiencing a renaissance. (NYTimes)
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