Book review: Matthew P. Erickson makes the case for active management in Asset Rotation: The Demise of Modern Portfolio Theory and the Birth of an Investment Renaissance. (Enterprising Investor)
Quote of the Day
"One of biggest investing lessons I've learned is that the more precise you try to calculate, the further from reality you're likely to end up."
(Morgan Housel)
Chart of the Day
Hedge funds now hold their first ever net short position in gold futures.
Markets
- The commodity bear market is pretty unrelenting. (wsj.com)
- There is little good news on the horizon for US energy markets. (soberlook.com)
- Don't feel too bad for the goldbugs. (washingtonpost.com)
- Be on alert for continued weakness in the high yield bond market. (fmdcapital.com)
- Three measures that show weakening market breadth. (ivanhoff.com)
Strategy
- So-called macro tourists have to get so many things right. (ritholtz.com)
- Why you should simply "forget the news." (stockcharts.com)
- Five lessons from a change in trading plans. (traderfeed.blogspot.com)
Companies
Finance
- Goldman Sachs ($GS) is crushing it to get tech IPOs. (businessinsider.com)
- Charles Schwab ($SCHW) is aggressively building out its branch network. (riabiz.com)
- Housing markets can get out of whack because you can't short an overpriced house. (nytimes.com)
Global
Policy
- Should we be worried that the biggest asset managers own wide swaths of many industries? (wsj.com)
- Raise the gas tax already. (newyorker.com)
- Let's end corporate welfare while we are at it. (pointsandfigures.com)
Economy
- There is still no sign of a recession on the horizon. (dashofinsight.com)
- Just how much slack is there left in the labor market? (econbrowser.com)
- What CEOs said on earnings calls this week. (skrisiloff.tumblr.com)
- A succinct summary of the Week's economic events. (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 might have missed in our Saturday linkfest. (abnormalreturns.com)
