Book list: Ten investment books to consider including The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to be True by Simon Lack. (Aleph Blog)
Quote of the Day
"Everyone giving investing advice should realize that money is emotional and people are different, just like medicine."
(Morgan Housel)
Chart of the Day
The US stock market is at a ten-year high relative to the rest of the world.
Markets
- T-bill rates are on the rise. (next.ft.com)
- The muni bond yield curve has flattened dramatically. (bloomberg.com)
- High beta stocks have been underperforming since April. (crossingwallstreet.com)
REITs
- Nir Kaissar, '(I)f you want meaningful expected price appreciation from real estate, buy a REIT and rent your home. Homes are wonderful places to raise a family. They aren’t great investments." (bloomberg.com)
- Rising rates don't doom REITs. (etf.com)
Strategy
- What happened to the small cap value premium? (blogs.cfainstitute.org)
- "All-weather portfolio" is a misnomer: no strategy works all the time. (basonasset.com)
- The biggest lesson learned by a trader in 2015. (athrasher.com)
- Why StockTwits is a great resource for traders. (ibankcoin.com)
Offers
- Free streaming music and 2-day shipping. What's not to like. Get a 30-day trial to Amazon Prime. (amazon.com)
- MODERN TRADER Magazine—the essential journal for professional traders and active investors. Get one of five investment classics with this special subscription offer! (moderntrader.com)
Companies
- Should Dow Chemical ($DOW) and DuPont ($DD) is would be a failure of nerve. (wsj.com)
- Now Yahoo ($YHOO) is planning to spin-off its core business. (nytimes.com)
Finance
- Oaktree Capital ($OAK) sees plenty of opportunities in distressed debt. (bloomberg.com)
- Why hedge funds should skip recruiting Economics PhDs. (bloombergview.com)
- Pension funds have paid a lot of fees to PE firms but by and large it has been worth it. (nytimes.com)
- Why pension funds need a 'process over outcome' mindset. (awealthofcommonsense.com)
- Why there will never be an Uber or Airbnb in fintech. (blogs.reuters.com)
ETFs
- Active domestic stock managers have one last shot to make their case, but it will require a bear market. (news.morningstar.com)
- How big are ETMFs going to be? (thereformedbroker.com)
- Three ETF issuers that are having a good year. (etf.com)
Global
- Emerging markets have found their contrarian magazine cover. (marketwatch.com)
- Chinese tech firms are de-listing in the US only to re-list in China. (wsj.com)
Economy
- Why you should be optimistic about the US economy. (calculatedriskblog.com)
- The labor market supports a Fed decision to raise rates. (blogs.wsj.com)
Earlier on Abnormal Returns
- A new edition of Essential Listening is up with takes on forecasting, robots and nootropics. (blogs.cfainstitute.org)
- Personal finance links: investment reality. (abnormalreturns.com)
- What you may have missed in our Tuesday linkfest. (abnormalreturns.com)
