Quote of the day
Paul Krugman, “Among other things, people getting their news from sources like that [CNBC] are probably getting terrible advice about any kind of investment that depends on macroeconomics.” (NYTimes)
Chart of the day
The bullish argument for Russia. (Focus on Funds)
Markets
How can we counteract the ‘bubble in fear‘ and irrational demand for liquidity? (John Kemp via FT Alphaville)
Recession or muddle through: seven things to pay attention. (Big Picture)
Is negative sentiment still worth fading? (The Reformed Broker)
Companies are cutting earnings guidance at a recession-like pace. (Money Game)
Not surprisingly the USDA has cut corn crop forecasts. (Bloomberg)
Financial conditions are actually quite normal. (Calafia Beach Pundit)
Where the relative strength is sector-wise. (Systematic Relative Strength)
Strategy
The surprising strength of the ‘Pre-FOMC Announcement Drift.’ (LIberty Street Economics via Money Game)
Beware your residuals, that’s where the alpha is hiding. (macrofugue)
On the use of moving averages on volatility-sorted portfolios. (Turnkey Analyst)
Why you should focus on dividend growth, not raw yield. (YCharts Blog)
Jim Chanos on the psychology of short-selling. (Market Folly)
Alternatives
Another private REIT goes bad. (InvestmentNews)
The case against so-called ‘alternative assets.’ (Financial Advisor)
Companies
Tech darling, IBM ($IBM), has a bit of a revenue growth problem. (Herb Greenberg)
Visa ($V) and Mastercard ($MA) are still looking good. (Charles Sizemore)
What is going on with Wal-Mart ($WMT)? (Stock Sage)
Exchanges
The SEC is going to create a “consolidated audit trail” for stock trades. (WSJ, Marketwatch)
Forex platforms are pushing back against high frequency traders. (FT)
Finance
A Peregrine Financial explainer. (Marketplace)
Blackstone Group ($BX) is not shy about their success in real estate. (WSJ)
Citigroup ($C) is becoming more transparent. (Deal Journal)
Founders are pushing back against having to give up control to VCs. (WSJ)
Why is Manchester United choosing the US for its IPO? (Dealbook)
Libor
What comes after Libor? (FT)
Libor lawsuits are flying. (Dealbook)
Hedge funds
Why can’t hedge funds beat a 60/40 portfolio? (Bloomberg)
Paolo Pellegrini lost a bundle investing with John Paulson. (WSJ, Dealbreaker)
Some big name hedge funds bucked the losing trend YTD. (Institutional Investor)
Despite performance problems institutional investors are planning to add to hedge fund allocations. (All About Alpha)
ETFs
The future of ETFs is fixed income. (FT)
Some ultra-short bond ETF options. (IndexUniverse)
The lowdown on the new AdvisorShares Global Alpha & Beta ETF ($RRGR). (ETFdb)
FINRA issues a warning about ETNs. (IndexUniverse)
Global
Spain may have to put the hammer down on bank debt holders as a condition of a bailout. (WSJ, FT Alphaville)
A tale of two Chinas. (FT Alphaville)
The generation war is alive and well in the UK. (The Source)
In defense of outsourcing. (Free exchange)
Economy
Mortgage refinancing continues to expand. (Sober Look)
Still no sign of recession in these indicators. (Capital Spectator)
States are doing a good job with budgets. (Income Investing)
Earlier on Abnormal Returns
My interview with Chuck Jaffe on the MoneyLife Show. (Abnormal Returns)
What you missed in our Wednesday morning linkfest. (Abnormal Returns)
Mixed media
Another example why horse racing in America is broken. (Deadspin)
Why bother watching now? Goldman forecasts the Olympic medal haul. (Money Game, FT Alphaville)
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