Quote of the day
Andrew Lo, “Buy-and-hold doesn’t work anymore. The volatility is too significant. ” (Money)
Chart of the day
A gap is opening up between the Dow Transports and Industrials. (Dynamic Hedge)
Markets
It is only recently that investors could actually earn headline market returns. (Jason Zweig)
Are individual investors now jumping into the market at the wrong time? (Horan Capital also Investing Caffeine)
Rydex traders are unusually bullish at the moment. (StockCharts Blog)
People want protein, buy farmland. (Money Game, ibid)
Dividends are on the rise, just in time for a tax hike. (CFO)
Strategy
If Freeport McMoran ($FCX) is a tell, then the market is at a critical juncture. (chessNwine)
Investors have never had it so good. (Kid Dynamite)
How to play further upside with calls. (Barron’s)
The value vs. growth game is played out. (The Reformed Broker)
Companies
iRobot ($IRBT) thinks the market for robots is set to tip. (NYTimes)
What next for the $1.5 billion Yelp ($YELP)? (SAI, WSJ, GigaOM)
Apple ($AAPL) has helped a number of hedge funds to start the year. (Institutional Investor)
Finance
The Facebook team of underwriters is growing. (Bloomberg, Clusterstock)
A look at recent first day pops for Internet IPOs. (Deal Journal)
AIG ($AIG) did something right. They bought Blackstone ($BX) shares back in the late 1990s. (Deal Journal)
ETFs
Active ETFs are muddying the distinction between low-cost ETFs and mutual funds. (Barron’s)
How has $VQT handled market volatility of late? (VIX and More)
Surprised more firms haven’t chose to copy the Vanguard ETF model. Van Eck weighs in. (IndexUniverse)
Momentum at work, the five year track record of the PowerShares DWA Technical Leaders ETF ($DWA). (AllETF)
Global
A look at the growing economic disparity between France and Germany. (NYTimes)
Canada could soon be getting bigger. (Globe and Mail)
Tough to buy “statist” companies when they try to do more than just earn profits. (Bloomberg)
How oil shocks affect economic growth (by country). (beyondbrics)
What Jeremy Lin tells us about the new global superstar economy. (Project Syndicate)
Economy
Why the economy won’t shrug off higher oil prices. (Money Game also NYTimes)
Even amid the housing bubble (and bust), real estate was still a local phenomenon. (NYTimes)
23% of all mortgages are still underwater. (Real Time Economics)
Greg Mankiw on the challenges of parsing ordinary income and capital gains. (NYTimes)
Our next big debt crisis will involve student loans. (Sober Look)
Earlier on Abnormal Returns
The equity risk premium may be lower today, but at least you can keep most of what you make. (Abnormal Return)
Top clicks this week on Abnormal Returns. (Abnormal Returns)
What you missed in our long form Saturday linkfest. (Abnormal Returns)
Book reviews
A review of Robert Harris’ The Fear Index. (NYTimes)
Two books that argue for a better future including Diamandis and Kotler’s Abundance: The Future Is Better Than You Think. (Economist)
Mixed media
Why tuition keeps going up at state schools. (Economix)
Why Gen Y may want to buy a house eventually. (Megan McArdle, ibid)
Four things entrepreneurs can learn from Warren Buffett. (Pando Daily)
Legalized pot makes for safer roads. (Real Time Economics)
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