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Quote of the day

James Picerno, “The lesson here is that much of what bedevils investors in earning a respectable risk premium over medium-to-long-time horizons is behavioral risk. We are, collectively, our own worst enemy when it comes to intelligently managing asset allocation.”  (Capital Spectator)

Chart of the day

XLU Total Return Price Chart

XLU Total Return Price data by YCharts

Homebuilders and utilities have been shunned by the market.  (Dr. Ed’s Blog)


Why Apple ($AAPL) investors shouldn’t be surprised by a pullback.  (Market Anthropology)

Jeff Gundlach still likes agency mortgage REITs.  (Income Investing)

When markets lead the real economy.  (Charts etc.)

Big oil needs to give up its “addiction to growth.”  (Breakingviews)


Apple wants to supplant Microsoft Office on iOS devices with free iWork.  (Quartz)

Apple has yet to make a truly “cheap iPhone.”  (Slate)

The new iPhone 5S provides Apple an inroad into serious gaming.  (GigaOM)

The iPhone’s new fingerprint sensor works.  (Daring Fireball)

The iPhone 5c is Jony Ive’s baby.  (TechCrunch)

Apple is playing a different game than others.  (stratechery)

Apple is a victim of its own success.  (Pando Daily)


Verizon ($VZ) bonds are likely to suffer indigestion for awhile.  (Aleph Blog)

Warburg Pincus is using this “exit window” to thin its portfolio.  (Term Sheet)

The implementation of the Volcker Rule is stuck in neutral.  (WSJ)

Just because a company can sell stock, should it?  (Dealbook)

Can the CFTC come up with a better regulatory model for HFT?  (NetNet)


Vanguard isn’t above a little financial engineering.  (IndexUniverse)


China’s mobile market continues to grow…at the low end.  (FT Alphaville, beyondbrics)

Why Tokyo winning the 2020 Olympics may actually matter.  (Business Insider)


We have yet to hit peak sequester.  (Business Insider)

Americans have stopped refinancing their mortgages.  (Calculated Risk)

A look at Tyler Cowen’s new book Average Is Over: Powering America Beyond the Age of the Great Stagnation.  (Reading the Markets, Marginal Revolution)

Earlier on Abnormal Returns

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

Mixed media

Why does McDonald’s ($MCD) keep trying to improve on perfection, the Egg McMuffin?  (Slate)

Fantasy sports are a growth business.  (The Atlantic)

Thirsty monkeys like sure bets for water.  (Quartz)

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