Quote of the day

Aaron Brown, “When a system fails, the urge is to add a system that addresses the failure. But chances are the added system will cause the next problem.”  (Institutional Investor)

Chart of the day

A look at the quiet gold rally.   (Afraid to Trade)

Markets

Managed futures fund returns were no great shakes in 2011.  (Financial Advisor)

Dividend stocks are not bond substitutes.  (CBS Moneywatch)

Another risk on/risk off indicator worth tracking.  (Big Picture also ETF Trends)

Low volatility investing is not a strategy for all markets.  (Random Roger)

Strategy

Even VCs need to “let their winners run.”  (A VC)

Are you an “assumption hunter“?  Every organization needs one (or more).  (the research puzzle)

Why you shouldn’t own your company’s stock in your 401(k).  (SmartMoney)

Something for everyone in the 2012 Online Broker Review.  (StockBrokers)

Companies

Sears Holdings ($SHLD) is selling stores to raise some cash.  (Deal Journal, Barron’s, 24/7 Wall St.)

Is Google ($GOOG) spreading its attention too thin?  (SAI)

An excerpt from Hedge Fund Wisdom looks at United Rentals ($URI).  (market folly)

Technology

Young adults would rather do anything than give up their smartphones.  (Dynamic Hedge)

Why wait?  You can get Windows plus Office on your iPad today.  (NYTimes)

The best weather forecast you can get…for free.  (Slate)

Finance

Like moths to a flame, US money market funds up their European exposure.  (FT also Sober Look)

Trills, or GDP-linked bonds, are a really dumb idea.  (Crossing Wall Street, Felix Salmon contra Dealbreaker)

Just how effective can a 530 page Volcker Rule actually be?  (Dealbook)

High frequency trader shenanigans are only part of the problem with today’s markets.  (Points and Figures)

Why some banks don’t want to grow up.  (Deal Journal)

Confusion reigned at MF Global in its last days.  (WSJ)

ETFs

In search of one ETF to rule them all.  (Dealbreaker)

And so it goes…some zombie ETFs bite the dust.  (Focus on Funds)

Global

Japan is finally getting serious about combating deflation.  (MarketBeat)

The Asian bond market is hopping as companies take advantage of low rates.  (WSJ)

Satyajit Das, “A declaration of victory in the European debt wars would be premature.”  (Minyanville)

Globalization is making diversification somewhat redundant.  (Buttonwood)

Economy

Average weekly initial unemployment claims continue to trend down.  (Calculated Risk, Capital Spectator)

The surge in long term unemployment has led to a surge in disabled workers.  (Marginal Revolution)

In trying to save the economy the Fed is creating great uncertainty.  (Macro Rants)

How should central bankers react to higher oil prices?  (Money Game)

Earlier on Abnormal Returns

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

Mixed media

Individual and institutional investors are blending into ‘instividual investors.’  (Howard Lindzon)

Congratulations on five years, David.  (Aleph Blog)

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