Quote of the day
Marshall Jaffe, “In an obsessive but fruitless drive for performance too many fund managers compromise the single most important weapon in their arsenal: their investment process.” (ThinkAdvisor)
Note card of the day
All the financial advice you may ever need…on a note card. (@haroldpollack via @m_sendhil)
Stocks
Taking a look at an old market maxim: sell Rosh Hashanah buy Yom Kippur. (Total Return, Bespoke)
The S&P 500 is not particularly correlated with changes in the Fed’s balance sheet. (Pragmatic Capitalism)
Bonds
The big risk to the markets: a spike in Treasury yields. (Market Anthropology)
Should investors worry about a 3% 10 year? (MoneyBeat)
Jumbo mortgage rates are below conforming mortgages. (WSJ)
The market is not looking for much inflation. (Capital Spectator)
Strategy
On the limits of fundamental analysis. (Crossing Wall Street)
Two ways of protecting your account from yourself. (Trader Habits)
The world’s largest longest backtest of momentum. (SSRN)
A new e-book by William Bernstein, Deep Risk: How History Informs Portfolio Design, is always worth noting. (Amazon)
Companies
How to put a valuation on Tesla ($TSLA). (Musings on Markets)
Vitaily Katsenelson, “Microsoft’s turnaround just became at least 30 percent more difficult.” (Institutional Investor)
Nokia ($NOK) had to die so the smartphone could live. (The Atlantic)
Finance
Insider trading laws don’t apply to muni bonds. (WSJ)
Ten steps on Twitter’s road to an IPO. (Buzzfeed Business)
The startups that are democratizing quantitative trading. (Forbes)
Hearsay the social network for bankers. (Dealbook)
Funds
Sheila Bair, “Nothing has fundamentally changed to address the structural weaknesses of money funds..” (Bloomberg)
Alternative funds are no longer all that alternative. (WSJ)
Global
The case for optimism in the UK. (Gavyn Davies)
The Reserve Bank of Australia is on quite a streak. (Slate)
Economy
Weekly initial unemployment claims drop and the ADP payroll number was meh. (Calculated Risk, ibid)
The ISM non-manufacturing report for August shows faster growth. (Real Time Economics, Calculated Risk)
The balance sheet recession is over. (Bonddad Blog)
Auto sales are now back at pre-crisis levels. (The Daily Beast, Dr. Ed’s Blog, WSJ)
Americans have started having babies again. (WSJ)
Earlier on Abnormal Returns
What you missed in our Wednesday linkfest. (Abnormal Returns)
Mixed media
How smart can a smartwatch ever be? (New Yorker)
Pandora ($P) claims to not be worried about iTunes Radio. (Quartz)
Oyster is the Netflix for books. (Pando Daily)
What said America can’t innovate any more? Campbell’s ($CPB) is bring soup to your Keurig. (WSJ)
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