Quote of the day
Dan Greenhaus, “Valuations are always excessive for small-caps and biotechs, they are never supposed to be cheap…There is an irony in the Fed focusing on valuations for biotechs given that they always trade at a premium to the broad market as these companies have high growth prospects.” (FT)
Chart of the day

The yield curve has been flattening all year. (Andrew Thrasher also Alpha Now)
Markets
The equal-weighted S&P 500 is starting to lag. (Focus on Funds also TRB)
A look at some really long term sector charts. (Humble Student)
Tobias Carlisle, “The Shiller PE is not a particularly useful timing mechanism.” (Greenbackd)
Strategy
False narratives are the bane of investor seeking wisdom. (The Psy-Fi Blog)
Lessons learned from Leon Cooperman that doesn’t include specific stock picks. (A Wealth of Common Sense also TRB)
Does risk-adjusted time series momentum work better? (SSRN)
Barry Ritholtz talks with Rob Arnott of Research Affiliates. (Bloomberg View)
Companies
Trying to make sense of today’s Microsoft ($MSFT). (stratechery)
Allergan’s ($AGN) defense against Valeant ($VRX) is about delay. (MoneyBeat also Bronte Capital)
Finance
Just look how AbbVie ($ABBV) is paying for Shire Pharmaceuticals ($SHPG). (FT)
Check out who the big winners are in the Alibaba ($BABA) IPO. (Dealbook, Breakingviews)
Funds
On the gnawing reality gap for hedge fund investors. (FT Alphaville)
Global
Chinese IPOs have been hot this year. (WSJ)
Emerging markets have had little problem borrowing this year. (FT)
Economy
The Chicago Fed National Activity Index slowed in June. (Calculated Risk)
The Fed should stick to the macroeconomy not sectors. (Gavyn Davies)
How much are demographics affecting wage growth figures? (Bloomberg)
Earlier on Abnormal Returns
What you might have missed in our Sunday linkfest. (Abnormal Returns)
Mixed media
Why is messaging on the smartphone so fragmented? (A VC)
How a ‘social OS’ by being more contextual will out-Facebook, Facebook ($FB). (WSJ)
Do we need another iOS podcasting app? Maybe if it is from Marco Ament. (TechCrunch)
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