Quote of the day

James Picerno, “Because every portfolio strategy, no matter how exotic, extreme or clever has an embedded bias related to asset allocation. In other words, you’re making asset allocation decisions, whether you realize it or not.”  (Capital Spectator)

Chart of the day


Forward P/E ratios may have a lid on them due to recent geopolitics.  (Dr. Ed’s Blog)


Individual investors are not sure which way to turn.  (Bespoke)

Another sign that European stocks are cheap relative to US stocks.  (The Reformed Broker)

Why you should think of markets as an “ecosystem.”  (research puzzle pieces)

Why the renminbi is dropping.  (FT)


We already knew that “amateur” traders were beset by behavior biases.  (All Star Charts)

More evidence that investors tend to overreact.  (Jason Zweig)

Don’t let bad memes take you off track.  (A Dash of Insight)

Traders gonna trade.  (Above the Market)


Google ($GOOG) is using it pricing pressure for storage to take it to Dropbox and Box.  (Estimize, DailyFinance)

Is Twitter ($TWTR) going to ditch the ‘@’?  (Business Insider)

Lookout, Google and Amazon ($AMZN) want to push into gaming.  (Wired)

Who is going to want Yahoo ($YHOO) after the Alibaba IPO?  (Microfundy)

Airbnb could soon have a $10 billion valuation.  (WSJ, Quartz, Dealbook)

Finance media

How to disaggregate Bloomberg.  (Matt Turck)

When financial models go open-source you get Thinknum.  (TechCrunch)

A good listen: Howard Lindzon chats with Michael Covel.  (Trendfollowing Podcast)


Make sure what you are reading on your favorite investing sites is not a paid promotion.  (Fortune)

Do regulators understand how high frequency traders makes money?  (Bloomberg)

Dear inside traders, “.. don’t buy short-dated out-of-the-money call options in companies that are about to be acquired.”  (Bloomberg View, Dealbook)


Funds run by teams tend to outperform.  (Morningstar)

An interview with Jim Wiandt, CEO of ETF.com.  (Rick Ferri)


Weekly initial unemployment claims data has flattened out at pre-recession levels.  (Calculated Risk)

The Fed is “headed in only one direction.”  (Tim Duy)

Does Janet Yellen speak too clearly?  (Businessweek, Aleph Blog)

The Fed is becoming more active in the repo markets.  (FT)

Want to save the post office? Turn it into a bank.  (Slate)

Earlier on Abnormal Returns

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

Mixed media

Why you should get rid of your second monitor.  (Farhad Manjoo)

On the many challenges of good data journalism.  (Quartz)

Why you should write for an hour a day.  (FeldThoughts)

You can support Abnormal Returns by visiting Amazon. Don’t forget to follow us on StockTwits and Twitter.