Quote of the day

Gavyn Davies, “(L)iquidity trap conditions have left bonds looking extremely expensive relative to equities in the developed economies. Nominal equity returns may be held back by low inflation but in real terms they should outperform government bonds..”  (FT)

Chart of the day

How the hedge fund industry kept 98% of profits as fees.  (In Pursuit of Value also Forbes)


Q4 earnings and revenue beat rates are no great shakes.  (Bespoke)

What happens when previously bearish analysts turn bullish on the economy?  (Marketblog)

The growing disconnect between bonds and stocks is puzzling.  (SurlyTrader)

Euro who?  The S&P 500 has disengaged from the value of the Euro.  (Crossing Wall Street)

The market is cheap, except for one fly in the ointment: high profit margins.  (Marketwatch)

What happens after the market goes through a series of gaps.  (Market Anthropology)


If you don’t have a plan, ignore Apple’s earnings.  (Phil Pearlman)

The “triple F” system for identifying swing trades.  (bclund)

Sometimes even the big boys get things wrong.  (YCharts Blog)

High short interest as a signal to issue equity.  (SSRN)

Warranted multiples are a more robust valuation measure.  (Institutional Investor)

Portfolio management

Man cannot live on relative strength alone.  The value of adding low volatility to your portfolio.  (AllETF also Systematic Relative Strength)

Does it matter when or how often you rebalance your portfolio?  (CXO Advisory Group)

Why portfolio dynamics are difficult to understand.  (CSS Analytics)


The one thing that could make Facebook worth a lot more.  (SAI)

How to save Research in Motion ($RIMM).  (Marketwatch)

Apple ($AAPL) is the world’s largest purchaser of semiconductors.  (AppleInsider)

The retail landscape is changing faster than you think.  (Megan McArdle)

McDonald’s ($MCD) keeps rocking.  (Bloomberg)


First hedge funds, now private equity:  it’s better to run a fund than invest in it.  (FT also naked capitalism)

Credit Suisse is by far and away the most creative bank when it comes to banker compensation.  (Dealbreaker)

2011 was not a good year for pension fund returns.  (Pension Pulse)

If you can’t do the time…sentences for convicted insider traders are likely to get tougher.  (Dealbook)


The mutual fund industry is dying the death of “a thousand cuts.”  (Josh Brown)

2011 was a “whole lot of nothing” for managed futures funds.  (HedgeWorld)

Why are investors so willing to pay a premium for Pimco-managed closed end funds?  (Focus on Funds)

What makes FPA Crescent tick?  (Morningstar)

New ETFs are struggling.  (CNNMoney)


Remember Portugal?  (MarketBeat, Sober Look)

Just in case you needed another reason not to invest in Chinese companies.  (Dealbook)


A look at December economic reports.  (Capital Spectator)

A big jump in trucking volume in December.  (Calculated Risk)

What is the Fed trying to accomplish with its new interest rate forecasts?  (FT Alphaville)

Two positive signs for the housing market.  (Sober Look)

Do we really want to make iPhones in America?  (Ultimi Barbarorum also The Atlantic)

Earlier on Abnormal Returns

Margin Call writer/director J.C. Chandor earns an Oscar nomination for Best Original Screenplay.  (Speakeasy earlier Abnormal Returns)

What you missed in our Tuesday morning linkfest.   (Abnormal Returns)

Mixed media

How Twitter bots change “social connections.”  (Technology Review)

To get Inside Apple read Adam Lashinsky’s new book.  (GigaOM)

Are premium batteries worth the extra cost?  (Wired)

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