Young Money: Inside the Hidden World of Wall Street’s Post-Crash Recruits by Kevin Roose appears on “The Best Books I’ve Read in 2014” by Ben Carlson at A Wealth of Common Sense.
Quote of the Day
“Risk-aversion is one of those behaviours that may not seem all that rational in terms of building wealth, or increasing the number of offspring,” he says. “But . . . if you engage in more conservative behaviour, it’s much less likely that nature will eliminate you.”
(Andrew Lo)
Chart of the Day
Sectors change: health care is getting more market-like.
Markets
- The stock market may fall but it won't be for the reasons commonly mentioned. (fat-pitch.blogspot.com)
- A look at the historical performance of the Nasdaq before the Christmas holiday. (quantifiableedges.com)
- Financials and health care are way overbought. (shortsideoflong.com)
- TIPS at today's prices are a cheap option on higher inflation. (economicmusings.com)
Strategy
- Why it is difficult to actually know what is "priced in" to a stock. (awealthofcommonsense.com)
- Why our investing instincts are so often wrong. (maliceforall.com)
- Two hidden strengths of successful traders. (traderfeed.blogspot.com)
Companies
- Yahoo ($YHOO) needs to start getting the basics right. (techcrunch.com)
- Are Apple's ($AAPL) share buybacks a big waste of money? (forbes.com)
- Since Marissa Mayer was hired Yahoo's ($YHOO) stock has surged while revenues have fallen. (businessinsider.com)
- The deal between Express Scripts ($ESRX) and AbbVie ($ABBV) is a big deal for biotech. (thestreet.com)
Managers
- John Authers, "If only active managers would pay themselves less, they might have a far more valid proposition to offer to their clients." (ft.com)
- Robo-advisors are growing at a good clip. (businessinsider.com)
- Investment managers have a hard time getting out of asset-gathering mode. (freezingassets.org)
ETFs
- Three notes on the new Reality Shares DIVS ETF ($DIVY). (etf.com)
- The New York Fed is interested in ETF pricing. (ft.com)
Global
- Scotland dodged a bullet. (bbc.com)
- How lower oil prices are hurting the Canadian economy. (soberlook.com)
Economy
- The November Chicago Fed National Activity Index showed an accelerating economy. (calculatedriskblog.com)
- Falling oil prices will not dissuade the Fed from normalizing rates. (economistsview.typepad.com)
- Do falling oil prices increase the risk of deflation? (econbrowser.com)
Earlier on Abnormal Returns
- An academic research-focused linkfest with a look at the value and small cap premia. (abnormalreturns.com)
- Good investment advice doesn't need to be updated all that often. (abnormalreturns.com)
- What you may have missed in our Sunday links. (abnormalreturns.com)
Mixed media
- Seth Godin, "There's a fundamental difference between the things you do every day, every single day, and the things you do only when the spirit moves you." (sethgodin.typepad.com)
- Do we really need to set aside to "think"? (ft.com)
- Tim Harford, "Are surprise gifts better than something specifically requested on a wish list? Are expensive gifts a good way to express affection?" (timharford.com)
