You can keep up to-date with all our posts by subscribing to our newly re-designed e-mail newsletter. Sign up here!

Quote of the day

John Authers, “Benchmarking therefore gives managers a huge incentive to stay fully weighted in large, risky securities. This eliminates any risk premium these stocks might have had, and leads to the inversion of risk and return. ”  (FT)

Chart of the day


Markets are always tempting us to make mistakes.  (A Wealth of Common Sense)


The stock market has risen in the face of widespread skepticism.  (Barry Ritholtz)

Markets cannot be boiled down to simple stats.  (The Reformed Broker)

Don’t focus too much on the most recent news/data point.  (Aleph Blog)


What Julian Robertson looks for in a stock.  (Market Folly)

Optimistic analysts are more likely to get hired by the companies they cover.  (FT Alphaville)

The adverse effect of fund fees compounds over time.  (Pragmatic Capitalism)


How Apple ($AAPL) creates leverage and the future of Apple Pay.  (stratechery)

Google ($GOOG) is trying to catch up to Amazon in the cloud.  (WSJ)

Now Amazon ($AMZN) wants to extend free shipping via Amazon Prime to other retailers.  (Business Insider)

Why acquisitions fail: tying the technology together.  (Fortune)


On the diversification benefits of REITs.  (Morningstar)

Investors often overlook the credit risk in bank loan funds.  (Dealbook)

Currency ETPs are struggling to capture assets in a low volatility world.  (FT)

ETF investors are buying the dip in Russia.  (beyondbrics)


Low inflation is hitting European countries differently.  (WSJ)

What does “adjusted for inflation” mean over long time horizons?  (John Kay)


The October ADP report shows decent growth in private payrolls.  (Capital Spectator, Calculated Risk)

Falling unemployment rates have not yet sparked wage growth.  (Real Time Economics)

The October ISM services data was weaker than expected.  (Bespoke)

Earlier on Abnormal Returns

What you might have missed in our Tuesday linkfest.  (Abnormal Returns)

Mixed media

Working the late shift is killing people.  (BBC)

The iPad Air 2 is built for work.  (Fortune)

A lot of what people are doing at work isn’t actually work.  (The Atlantic)

You can support Abnormal Returns by visiting Amazon or follow us on StockTwits, Yahoo Finance and Twitter.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.