Quote of the day
David Merkel, “To all investors: try to match your investment strategy to the time that you need the money.” (Aleph Blog)
Chart of the day
Chipotle Mexican Grill ($CMG) is sinking but is it a result of increased competition from Taco Bell? (MarketBeat also Peridot Capitalist, Insider Monkey)
Diversification
Why diversification doesn’t work: changing correlations. (The Physics of Finance via @JackDamn)
Why the rich weathered the Great Recession: broad diversification and low debt. (Systematic Relative Strength)
Black Monday Revisited
Stock market crashes are more often than not buying opportunities. (James O’Shaughnessy, UpsideTrader)
So how predictable was 1987? (Crossing Wall Street)
The role did computers play in the 1987 Crash. (NYTimes)
Strategy
Ten secrets from Jesse Livermore. (StockCharts Blog)
Good forecasters are often drowned out by superficial pundits. (Capital Spectator)
A rave review for Frank J. Travers’ Hedge Fund Analysis: An In-Depth Guide to Evaluating Return Potential and Assessing Risks. (Reading the Markets)
Research
Evidence of the low volatility anomaly in international markets. (SSRN via @quantivity)
Does academic research destroy stock return predictability? (SSRN via @jasonzweigwsj)
Companies
When giants awaken: a look at two megacaps that have broken out. (The Reformed Broker)
How are Microsoft Surface pre-orders? (SAI, Wired)
China’s grip on the rare earth metals market is weakening. (Wonkblog)
Finance
Fueled by low borrowing rates: dividend recaps are back in a big way. (WSJ)
Muni defaults are on track for a three-year low. (Businessweek)
Checking in on the performance of the PPIP program. (Avondale Asset Management)
ETFs
Focusing on ETF expense ratios misses the point. (IndexUniverse)
ETF fees are coming down. Why aren’t adviser fees? (Wealthfront Blog)
WisdomTree ($WETF) is closing three ETFs. (Focus on Funds)
You couldn’t have designed a hotter ETF than the PowerShares S&P 500 High Dividend Portfolio ($SPHD). (IndexUniverse, ETFdb)
Housing
Och-Ziff Capital Management ($OZM) wants to get out of the home landlord business in Northern California. (Reuters)
How QE has affected the rental market. (FT Alphaville)
Economy
Two really positive economic notes. (Bonddad Blog)
How’s North American rail traffic? (ValuePlays)
Why GDP growth is good. (Conversable Economist via Economist’s View)
Earlier on Abnormal Returns
Who wins in an ETF price war? (Abnormal Returns)
What you missed in our Friday morning linkfest. (Abnormal Returns)
Liquidity
Why is cranberry juice good for UTIs? (mental_floss)
What is the good stuff in green tea? (LiveScience)
Coffee is replacing beer as the drink of choice for these college students. (Daily Telegraph)
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