Book excerpt: On the paradox of skill from Larry Swedroe’s The Incredible Shrinking Alpha: And What You Can Do to Escape Its Clutches. (Wealth Management)
Quote of the Day
"The way you’re going to get rich is not by investing like Warren Buffett. The way you’re going to get rich is by working hard; not spending a lot of money and saving. The name of the game is not to get rich. The name of the game is to not die poor. And the way you avoid dying poor is just by adhering to your strategy."
(William Bernstein)
Markets
- The primary attraction of Japanese stocks is valuation. (blogs.wsj.com)
- What happens when a stock is added (or dropped) from the Dow. (jeffhirsch.tumblr.com)
Strategy
- Brian Portnoy, "Ultimately, the math of diversification makes sense. It’s the psychology of diversification that is muddled." (brianportnoy.tumblr.com)
- Why again do people buy hedge funds? (nytimes.com)
- Strong opinions, weakly held: the key to investing success. (awealthofcommonsense.com)
- Why quant models beat human analysts. (systematicrelativestrength.com)
Companies
- The bull case for Twitter ($TWTR). (ophirgottlieb.tumblr.com)
- A lot is riding on the future of $100,000 cancer drugs. (bloomberg.com)
- A closer look at Allegheny's ($Y) 2014 annual report. (brooklyninvestor.blogspot.com)
Finance
- The big three credit ratings agencies are undergoing a big overhaul. (wsj.com)
- The SEC doesn't do much to oversee the burgeoning corporate bond market. (ft.com)
Funds
- Active managers are running out of excuses for their underperformance. (etf.com)
- Target date funds continue to take 401(k) market share. (wsj.com)
- Vanguard is set to launch muni bond ETFs. (wsj.com)
Economy
- Can the rest of the world pick up for a gently slowing US economy? (blogs.ft.com)
- Wage growth does not justify raising interest rates. (bonddad.blogspot.com)
- Domestic drillers are going to have to cut back production even further. (econbrowser.com)
Earlier on Abnormal Returns
- Research links: valuation metrics compared. (abnormalreturns.com)
- What you may have missed in our Sunday linkfest. (abnormalreturns.com)
