Book insights: Why we deny the role of luck. Insights from Max Gunther’s How to Get Lucky. (Farnam Street)
Quote of the Day
"About 20% of [Broadway] shows earn their money back, and about 20% of racehorses earn their keep..."
(Rocco Landesman)
Chart of the Day

Despite what they are saying US households are topping up on their equity holdings.
Markets
- Valuations are a poor short-term market guide. (ft.com)
- On the relationship between the Yen and gold. (marketanthropology.com)
- Three lessons from the Internet bubble. (pragcap.com)
Strategy
- Let economists obsess over interest rate moves. (theirrelevantinvestor.tumblr.com)
- Why it is so hard to show manager outperformance. (pionline.com)
- Why long-lived investors have different strategies. (alephblog.com)
- The herd mentality has always been with us. (awealthofcommonsense.com)
Companies
- IBM ($IBM) once ruled world. Lessons for Apple ($AAPL) today. (nytimes.com)
- Why the Comcast ($CMCSK)-Time Warner ($TWX) deal fell apart. (slate.com)
- Netflix ($NFLX) has no shortage of competitors. (investingcaffeine.com)
Finance
- How is Schwab's ($SCHW) robo-advisor doing? (blogs.barrons.com)
- Covenant-lite junk bond deals are soaring. (businessinsider.com)
- Big traders love weekly options. (online.barrons.com)
Funds
- The (late) case for managed futures funds. (online.barrons.com)
- Focus on managers willing to cut off the cash tap. (wsj.com)
- Can you use this underperforming mutual fund instead of cash? (econompicdata.blogspot.com)
Global
Economy
- Why aren't companies investing more? (thereformedbroker.com)
- What CEOs had to say about the economy on earnings conference calls this week. (skrisiloff.tumblr.com)
- Americans are driving again. (247wallst.com)
- Economists agree on the wisdom of free trade. (nytimes.com)
- A succinct summary of the week in the economy and markets. (ritholtz.com)
- The economic schedule for the coming week. (calculatedriskblog.com)
Earlier on Abnormal Returns
- Top clicks this week on the site. (abnormalreturns.com)
- What you may have missed in our Saturday linkfest. (abnormalreturns.com)