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Quote of the day
James Picerno, “What are the odds that investors will do a better job of managing a dozen risk factors vs. three?” (Capital Spectator)
Chart of the day

Price has a memory: why homebuilding stocks have paused. (chessNwine)
Markets
Does 2013=1982? (Unexpected Returns)
Yield investors are getting a second chance. (Minyanville)
The US continues to lead global markets. (Charts etc.)
Strategy
How do you know when a stock is broken? (Phil Pearlman, Ivanhoff)
Great investors read books, not tweets. Insights from Robert Hagstrom’s Investing: The Last Liberal Art. (Forbes)
Why your firm needs a “Client Advisory Board.” (Financial Advisor)
Hedge funds
Of course hedge fund managers don’t want to be benchmarked. (Pragmatic Capitalism)
On the role activist investors play in improving company performance. (WSJ)
Merger arb is actually having a pretty good year. (FT)
Companies
Is Amazon ($AMZN) Art doomed from the get-go? (Marginal Revolution)
The science behind Netflix ($NFLX) rating algorithms. (Wired)
Is Amazon the “anti-Apple ($AAPL)“? (Asymco)
Jeff Bezos
Jeff Bezos is getting a $50 million pension asset to help fund his acquisition. (Quartz)
All things considered did Bezos overpay? (Reuters, Bloomberg)
What can Jeff Bezos do with technology to make the Washington Post profitable? (The Verge)
Then again maybe this isn’t about technology at all. (Felix Salmon)
Why did Bezos buy a newspaper? (Fast Company)
Finance
Peer-to-peer lending has taken off. (WSJ)
Why did underwriters get the Sprouts Farmers Market ($SFM) IPO so wrong? (Daniel Gross)
Private equity firms are getting out of the banking business. (WSJ)
Why corporate bond trading will never go entirely electronic. (Bloomberg)
Funds
Doubleline Capital is getting into the equity fund business. (Institutional Investor)
Price competition is coming to the MLP ETP space. (IndexUniverse)
Global
India is lucky to have Raghuram Rajan to head its central bank. (beyondbrics also Bloomberg, Wonkblog)
Just how much slack is there in the UK economy? (FT Alphaville)
The healing has begun in the Spanish real estate market. (Jeff Matthews)
Economy
Why the Fed is still likely to taper in September. (Tim Duy, BI)
Do Americans really need subsidized 30-year fixed rate mortgages? (Quartz, Slate)
A look at booming farmland prices. (research puzzle pix)
Companies need not pay their employees the least amount possible. (Henry Blodget)
Earlier on Abnormal Returns
What you may have missed in our Tuesday linkfest. (Abnormal Returns)
Mixed media
Climate change is threatening the Maine lobster boom. (Quartz)
The orange juice market is shriveling up. (WSJ)
In defense of beer. (The Atlantic)
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