Quote of the day

Barry Ritholtz, “We do not know if equities are either over or under valued, because we have no idea what future earnings are going to be. The debate about valuations often turns on which group’s forecast is going to be correct: Expansion or contraction.”  (Big Picture)

Chart of the day


Check out just how big the spike in bond yields has been historically.  (FT Alphaville)


Stock correlations are at levels not seen since before the financial crisis.  (Condor Options, WSJ)

Signs of late cycle rotation.  (Humble Student)

Half of S&P 500 stocks are above their 50-day moving average.  (Bespoke)

Take heed of weak emerging markets.  (RiskReversal also Bloomberg)

Why has the market performed relatively poorly in September?  (HedgeWorld)


Carl Icahn doesn’t give a s*#t what you think.  (Joe Fahmy)

Fine art indices are inherently flawed.  (Economist)

A short history of factor investing.  (Rick Ferri)

Just how sensitive are momentum strategies to the starting day.  (SSRN via @quantivity)

Bill Ackman

What hath Bill Ackman wrought at JC Penney ($JCP)?  (Buzzfeed Business)

Is the Bill Ackman bashing overdone?  (The Reformed Broker)


How iTunes Radio will shake up streaming music.  (Techland)

LinkedIn ($LNKD) wants to attract college kids.  (GigaOM)

Bank loans

The bank loan market is shedding covenants.  (FT)

New investors are also making loans more volatile.  (Bloomberg)

Startup funding

Is crowdfunding an alternative to a world awash in capital?  (FT)

Startups looking to raise money are facing a slew of new SEC disclosure rules.  (TechCrunch)

Institutional investors

Public pension funds are self-managing more of their funds.  (Dealbook)

Institutional investors are getting into the ETP funding and seeding game.  (Pensions & Investments)

Fossil fuel divestment campaigns are gaining ground.  (Institutional Investor)


Should investors take a look at the reopened Fairholme Fund?  (Focus on Funds)

Charles Schwab ($SCHW) is entering the smart beta ETF space.  (TheStreet)


Indonesian stocks (and the rupee) got crushed today.  (FT Alphaville,

How Ireland got duped into guaranteeing all bank liabilities post-crisis.  (WashingtonPost)

Why are Chinese home prices continuing to rise?  (Quartz)


US manufacturing is regaining lost ground.  (WSJ)

The mortgage refinancing boom is over.  (Sober Look)

Rail traffic picks up some momentum.  (Pragmatic Capitalism)

Earlier on Abnormal Returns

What you may have missed in our Sunday linkfest.  (Abnormal Returns)

Mixed media

Twitter is becoming a mainstream investment tool.  (The Fiscal Times)

No one is under any obligation to read what you write.  (Krugman via Weisenthal)

How is the new Digg doing?  (GigaOM)

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

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.