Quote of the day

Carl Richards, “When you make a decision to avoid one type of risk, you might be exposing yourself to another one.”  (Bucks Blog)

Chart of the day

A report that demand for the iPhone 5 are weak pushed Apple ($AAPL) stock below $500.  (Crossing Wall Street, WSJ, BGR, Forbes)

Markets

Hedge funds are long and levered.  (Bloomberg)

Mexico is overbought, wheat is not.  (Global Macro Monitor)

January options expiration week tends to be weak.  (Quantifiable Edges)

Coffee seems to be bottoming.  (All Star Charts)

The great rotation

Is the ‘great rotation‘ from bonds into stocks already happening?  (WSJ, Income Investing)

Do bond fund investors know what interest rate risk they are taking?  (Fortune)

Are bond yields finally set to turn?  (Long Side of Short)

Strategy

The issues that the market is dealing with at present.  (Big Picture also Humble Student)

Reviews of a volatility based allocation system.  (Turnkey Analyst)

Successful sector rotation is tough.  (Rick Ferri)

Eight mistakes investors make with their 401(k) plans.  (Morningstar)

The Buffett-debunkers are wasting their time.  (The Reformed Broker)

Books

Postmodern Investment: Facts and Fallacies of Growing Wealth in a Multi-Asset World by Garry B. Crowder, Thomas Schneeweis, and Hossein Kazemi is a “breath of fresh air.” (Reading the Markets)

11 must-read books for novice traders including The Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders by Curtis Faith.  (Minyanville)

Advisers are not none too happy with Helaine Olen’s Pound Foolish: Exposing the Dark Side of the Personal Finance Industry.  (InvestmentNews)

Finance

Murder holes revisited.  (Bason Asset via TRB)

Pension funds can’t get enough hedge funds.  (All About Alpha)

The Series A crunch goes mainstream.  (NYTimes)

Funds

How Vanguard amassed $2 trillion in assets.  (Chuck Jaffe)

There is no good way to buy Canadian bonds via ETF.  (LearnBonds)

Quant funds have managed a small comeback.  (Morningstar)

Europe needs more ETF competition.  (IndexUniverse)

Global

Just how much spare capacity does the global economy really have?  (Gavyn Davies)

How important is manufacturing to the emerging markets?  (beyondbrics)

Economy

What the Fed will do if economic growth ramps up.  (Bloomberg)

Gasoline prices should not be the drag on the consumer they were in 2012.  (Calculated Risk)

Earlier on Abnormal Returns

Mixed media

The true purpose of a (finance) blog is self-improvement.  (The Reformed Broker)

A gaggle of firms is trying to tease some signal from social media noise.  (Telegraph, MarketBeat)

Social currency is the new net worth.  (The Real Interloper)

The top 100 finance blogs.  (Suitpossum)

Thanks for checking in with Abnormal Returns. You can follow us on StockTwits and Twitter.