Quote of the day
Josh Brown, “When in doubt, turn off the TV and read a book.” (The Reformed Broker)
Chart of the day
On the relationship between CAPEs and GMO’s 7-year asset class forecasts. (World Beta)
Markets
A move back to 100% cash. (Joe Fahmy)
Insiders have switched back into selling mode. (Mark Hulbert)
Where do correlations go from here? (Systematic Relative Strength)
Just how patient will hedge fund investors be with their alpha-less funds? (research puzzle pix)
Another reason to ignore political explanations for market moves. (Condor Options)
Strategy
Low-risk trades can quickly become portfolio killers if leveraged sufficiently. (Above the Market)
Tax loss harvesting isn’t sexy, but it is effective. (World Beta)
A look at the performance of low beta stocks since 1959. (iShares Blog)
Why the differences between arithmetic and geometric returns matter so much. (John Kay)
Companies
Wal-Mart ($WMT) is testing same-day delivery. (WSJ, Slate, 24/7 Wall St.)
Score one for David Einhorn: his long Yum! Brands ($YUM)-short Chipotle Mexican Grill ($CMG) is paying off. (MarketBeat)
Amidst the reach for yield business development corporations or BDCs are getting a closer look. (WSJ)
Tech
The bullish case for Apple ($AAPL) stock. (Bullish Cross)
What the decline of Zynga ($ZNGA) says about the state of the tech economy. (Slate)
Pandora ($P) is paying out real money to artists. (Pandora)
No one person can successfully manage two startups at once. (Pando Daily)
Finance
Why banks shouldn’t trade. (Felix Salmon)
Dual class share IPOs are becoming increasingly popular. (peHUB)
If individual investors are on the ropes, why are discount brokerage stocks so expensive? (YCharts Blog)
The long, hard road back for PE-backed Realogy from near bankruptcy to IPO. (Dealbook)
ETFs
A look at the bank loan fund category. (Morningstar)
What a concept: only launching ETFs with some built-in demand. (Focus on Funds)
How ETF inclusion drives individual stock correlations with the overall market. (SSRN via @quantivity)
The most liquid ETFs for every commodity. (CommodityHQ)
Global
The world’s economic recoveries all look a lot alike. (The Atlantic)
Currency markets have been remarkably stable. (Bonddad Blog)
No matter how you slice it Australia’s economy is slowing. (Sober Look)
Iraq is set to provide a boost to global oil production. (FT Alphaville)
Economy
By this measure Americans have already taken a big dose of economic medicine. (Money Game)
Why you should pay attention the ADP employment data. (Wonkblog)
Want a job? Manufacturers are ready to hire candidates with the right skills. (Bloomberg via Carpe Diem)
Why you can never rely on just one indicator to measure the health of the economy. (Capital Spectator)
Just how much does the desire for conspicuous consumption drive economic growth? (Stumbling and Mumbling)
Earlier on Abnormal Returns
Celebrating our seventh blogiversary and a big finance book giveaway. (Abnormal Returns)
What you missed in our Wednesday morning linkfest. (Abnormal Returns)
Mixed media
The surprising effect of Deep Blue on the professional chess economy. (Slate)
The SpaceX Dragon capsule successfully docks with the ISS. (ArsTechnica)
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