Quote of the Day
"I don't think anyone can be unemotional about money. It's like saying you'll be unemotional about your kids. If you kid gets arrested, you'll get emotional. And if you lose half your money in the stock market, you'll be emotional. That doesn't mean you'll act on those emotions, but no one should pretend like he or she has total control over emotions when the market is going wild. It's biology."
(Morgan Housel)
Chart of the Day

Just how long should we expect the S&P 500 to outyield the 10 year Treasury note?
Markets
- Chart porn: the best and worst days of the year for the Dow. (washingtonpost.com)
- What sectors are cheap? Energy and consumer discretionary. (alphaarchitect.com)
- Investors don't have much love for Australian stocks. (shortsideoflong.com)
Strategy
- What successful short-sellers look for in a shortable stock. (contrarianvalueedge.wordpress.com)
- Why social intelligence is important to successful investors. (traderfeed.blogspot.com)
- Even with the best trading system most traders would fail. (thecrosshairstrader.com)
60/40 Portfolios
- 60/40 portfolios have been helped by a multi-decade bull market in bonds. (pragcap.com)
- Rising interest rates and the risk of 60/40 portfolios. (awealthofcommonsense.com)
Advice
- John Bogle ain't perfect: four points of contention. (bloombergview.com)
- Don't let anyone pitch your random observations as market knowledge. (pragcap.com)
Companies
- Why Amazon's ($AMZN) results were so surprising. (recode.net)
- The five stages of disruption. (aswathdamodaran.blogspot.com)
- How Apple ($AAPL) overtook Microsoft ($MSFT): it wasn't afraid to cannibalize itself. (nytimes.com)
Finance
- Score another victor for activist investors: The Manitowoc Company ($MTW) agrees to split. (dealbook.nytimes.com)
- Activist investors are making headway in Japan. (wsj.com)
- Successful second acts in the hedge fund game are rare. (wsj.com)
Economy
- Q4 GDP was disappointing but the private sector remained strong. (capitalspectator.com)
- Don't ignore the message of the slope of the yield curve. (economics21.org)
- Why demand for macro forecasts isn't going away any time soon. (bloombergview.com)
Earlier on Abnormal Returns
- Podcast links: thinking big. (abnormalreturns.com)
- What you may have missed in our Thursday linkfest. (abnormalreturns.com)
- Putting some distance between you and a 60/40 portfolio. (abnormalreturns.com)