Quote of the day
Morgan Housel, “Without the misery, markets wouldn’t offer big returns, and without the prospect of big returns, markets will crash and cause misery. That’s why some investors must fail.” (Motley Fool)
Chart of the day

A look at ten-year rolling S&P 500 returns. (Bespoke)
Markets
Why markets are so complacent. (Pension Partners)
Eight market signs you don’t want to see. (The Reformed Broker)
Should we worry about the broader market after the drop in Internet stocks? (FT Alphaville)
When was the last time Treasury yields were this low? (Sober Look)
Investors have forgotten that small cap stocks are volatile. (Focus on Funds)
Strategy
A look at the historical performance of “shareholder yield.” (Millenial Invest)
Does value investing work in the tech sector? (Alpha Architect)
On the use of low volatility funds as a core equity position. (ETF)
Joseph G. Paul, “Low returns are a fact of investment life today.” (Alliance Bernstein)
Why the stock market makes you feel bad every day. (A Wealth of Common Sense)
If you comfortably trading you are probably doing it wrong. (NAS Trading)
Technology
Can Rackspace ($RAX) survive as a standalone cloud provider? (GigaOM, Dealbook)
Why Zendesk ($ZEN) had a nice first day pop in a bad market. (WSJ)
Uber is reportedly raising money at a $10 billion type valuation. (Bloomberg)
While Pinterest is pinning down a $5 billion valuation. (TechCrunch, Buzzfeed, NYMag)
Companies
Why Costco ($COST) is crushing Sam’s Club. (Huffington Post)
Why investors turned on Chipotle ($CMG) management. (Quartz)
Investors are worried AMC ($AMCX) won’t be able to replace Mad Men. (Quartz)
Finance
The David Tepper story. (The Reformed Broker)
Wall Street Week is coming back courtesy of SkyBridge Capital. (Business Insider)
How should bonds backed by single family home rental payments be rated? (WSJ)
Eight reasons why investors continue to pour money into hedge funds. (Rational Irrationality)
Global
Check out how many country’s bonds yield less than the US. (Wall Street Rant)
Euro yields have once again converged… (fastFT)
A look at Europe’s Japan-like inflation problem. (FT Alpahville, ibid)
Not all emerging markets are going to emerge. (John Gapper)
Economy
A surprising jump in April housing starts. (Calculated Risk)
N. American rail traffic is surging. (Pragmatic Capitalism)
American consumers are showing confidence in borrowing more. (NYTimes)
Why housing has slowed: the middle class is still getting squeezed. (FT)
Midwest farm values actually fell in Q1. (WSJ)
The federal gas tax is too low. (WashingtonPost)
Earlier on Abnormal Returns
When will Millenials warm to the stock market? (Abnormal Returns)
What you may have missed in our Thursday linkfest. (Abnormal Returns)
Mixed media
How to deal with a personal setback: insights from Jeff Macke co-author of Clash of the Financial Pundits: How the Media Influences Your Investment Decisions for Better or Worse. (The Daily Ticker)
From Philippe Petit’s Creativity: The Perfect Crime: why creativity involves breaking rules. (Speakeasy)
How daydreaming can aid in innovation. (Fast Company)
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