Quote of the day
John Bogle, “The cost matters hypothesis is all that is needed to explain why indexing works: gross return in the market as a whole, minus the costs of obtaining that return, equals the net return investors actually receive.” (FT)
Chart of the day

The ten year Treasury yield and nominal GDP growth. (Dr. Ed’s Blog)
Markets
“Global corporate bond issuance has this month fallen to the lowest level in five year..” (FT)
On the upside in corporate credit. (Income Investing)
Strategy
Why don’t investors pay up for quality stocks? (SSRN, Falkenblog)
Know your real number: why we are all at-risk of price anchoring. (Bucks Blog)
Rick Ferri, “There are two levels of fiduciary care. One is a legal standard and the other is a stewardship standard.” (Rick Ferri)
Companies
Steve Ballmer was pushed (hard) out of Microsoft ($MSFT). (AllThingsD)
Finance
Where are all the tech IPOs? (WSJ)
How BATS and Direct Edge came together. (Dealbook)
RIP, Muriel Siebert. (NYTimes, WSJ)
Global
As always keep an eye on China. (Gavyn Davies)
How QE translated into hot money emerging market inflows. (Sober Look)
Economy
Bill McBride, “Overall it appears the economy is poised for more growth over the next few years. ” (Calculated Risk contra Bonddad Blog)
It’s hard for the economy to push forward with stagnant wages. (WSJ)
This guy is the most qualified candidate for the Fed chair. (Wonkblog)
Why financial innovation cannot decrease risk. (MIT News via Economist’s View)
The geography of success. (Econbrowser)
Earlier on Abnormal Returns
What you may have missed in our Sunday linkfest. (Abnormal Returns)
Mixed media
What Howard Lindzon reads. (Howard Lindzon)
Ten business books that don’t suck including Lords of Finance by Liaquat Ahamed. (Big Picture)
Advance praise for Tim Harford’s new book The Undercover Economist Strikes Back: How to Run-or Ruin-an Economy. (Tim Harford)
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