Quote of the day
Larry Swedroe, “The bottom line is that when developing your investment policy statement, you must be sure that your portfolio doesn’t assume more risk than you have the ability, willingness and need to take.” (ETF)
Chart of the day

After a bad run, consumer staples are starting to outperform. (Andrew Thrasher)
Markets
Two-year Treasury yields are at multi-year highs. (Business Insider)
Why hedge funds love tech stocks. (Alpha Attribution)
Strategy
On the role of intelligence in trading success. (TraderFeed)
Valuation shorts vs. fraud shorts: which works better? (Enterprising Investor)
Why investment advice is often so confusing. (A Wealth of Common Sense)
Companies
How fast does GoPro ($GRPO) have to grow to justify its current valuation? (Henry Blodget)
Instagram’s Kevin Systrom joins Wal-Mart’s ($WMT) board. (Fortune)
Bill Gross
Why so many investors are questioning their Pimco Total Return fund positions today. (The Reformed Broker also WSJ)
Where Bill Gross went wrong. (Pragmatic Capitalism)
What’s Bill Gross going to do with all his Pimco closed-end funds? (MoneyBeat)
Once a manger goes passive there goes the costs of manager due diligence. (A Wealth of Common Sense)
Funds
The problem with active ETFs: managers leave. (ETF)
A review of the performance of the First Trust Dorsey Wright Focus 5 ETF ($FV) (CXO Advisory Group)
Dividend seeking investors have ruined things for the rest of us. (ETF)
Economy
The US manufacturing renaissance is real. (Dr. Ed’s Blog)
The Fed and the case of regulatory capture. (Justin Fox)
Energy
Solar power is growing so fast utilities are trying to slow its pace. (Vox)
Why solar energy advocates are so excited about perovskite. (WSJ)
What ever happened to Peak Oil? (WSJ)
Earlier on Abnormal Returns
What you might have missed in our Sunday linkfest. (Abnormal Returns)
Mixed media
Guy Spier’s The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and Enlightenment is not your typical investing book. (Reading the Markets)
Is mindfulness just another management fad? (Fortune)
Why Peter Thiel’s Zero to One: Notes on Startups, or How to Build the Futuremight be one of the best book business books ever. (The Atlantic)
You can support Abnormal Returns by visiting Amazon or follow us on StockTwits, Yahoo Finance and Twitter.