Quote of the day
Noah Smith, “What’s why when Nassim Taleb or some other guy on TV tells you that shorting Treasuries is a “no-brainer”, you shouldn’t bet your hard-earned money on his advice. You should keep your skin out of that game, because it’s a losing game.” (Noahpinion also The Week)
Chart of the day

The coal ETF is having a problem. (StockCharts Blog)
Markets
When sentiment matters. (Michael Santoli)
Because sentiment is elevated at present. (The Short Side of Long, Humble Student)
Hedgers are getting long Treasury futures. (Charts etc.)
Strategy
Carl Richards, “Looking for bubbles isn’t an investment strategy.” (Bucks Blog)
Yield chasing never ends well. (The Reformed Broker)
On the relationship between anxiety and advice. (Your Wealth Effect)
Some sensible New Year financial resolutions. (Vanguard Blog)
Finance
The billionaire showdown over Internet gambling centers on Caesar’s Acquisition ($CACQ). (Forbes)
Activist investors currently rule the hedge fund roost. (Dealbook)
ETFs
DFA really is a different fund animal. (Rekenthaler Report)
Is 2014 the year of active management? (Focus on Funds)
On the use of REITs in asset allocation. (Rick Ferri)
Is the lo-vol bubble finally over? (Focus on Funds)
Global
Does Europe have a deflation problem? (Business Insider, Free exchange)
Home country bias in sovereign debt ratings. (FT Alphaville)
Economy
How divided is the Fed? (Tim Duy)
Economic recoveries are becoming more durable over time. (Pragmatic Capitalism)
Cold weather means higher natural gas prices. (FT)
Coal isn’t done yet. (WSJ)
Earlier on Abnormal Returns
What you missed in our Monday linkfest. (Abnormal Returns)
Mixed media
Felix Salmon, “The entire national (and international) payments architecture needs a massive upgrade.” (Reuters)
The altcoin movement is a big popularity contest. (FT Alphaville)
On the SnapChat drama. (Om Malik)
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