Book excerpt: Ten great definitions for passive investors from Jason Zweig’s The Devil’s Financial Dictionary. (Monevator)
Quote of the Day
"The idea that the efficacy of momentum would decay over time shouldn’t come as a surprise. How could it not decay? For a strategy to retain outperformance, there have to be barriers to entry that prevent its widespread adoption."
(@Jesse_Livermore)
Strategy
- Often times it takes a long time for market efficiency to kick in: the case of $CUBA. (pensionpartners.com)
- Why buy junk bonds when you can buy 'junk stocks.' (ftalphaville.ft.com)
- Remember when your favorite financial pundit "never"? (awealthofcommonsense.com)
Offers
- Sign up for a trial of Audible.com and get two free e-books in the process including "Misbehaving: The Making of Behavioral Economics." (amazon.com)
- MODERN TRADER Magazine—the essential journal for professional traders and active investors. Get one of five investment classics with this special subscription offer! (moderntrader.com)
- Amazon is giving away a free year of cloud storage with select purchases. (amazon.com)
Companies
- Facebook ($FB) Messenger is making a move to become an all-in-one platform. (next.ft.com)
- WeChat is taking on WhatsApp in Africa. (qz.com)
- The "crappy" mobile web experience is in trouble. (fusion.net)
Funds
- Blackrock ($BLK) has a $32 billion problem: meh hedge funds. (bloomberg.com)
- Jeff Gundlach likes REITs and closed-end bond funds. (blogs.barrons.com)
- The Third Avenue Focused Credit Fund was a distressed debt fund in drag. (bloomberg.com)
- A cash cushion goes only so far for mutual funds. (bloomberg.com)
Economy
- The Fed surprised no one yesterday. (economistsview.typepad.com)
- We have officially reached the end of the financial crisis. (fusion.net)
- The upside of the Fed paying 50bp for IOR. (economicmusings.com)
- Weekly initial unemployment claims continue to show few layoffs. (calculatedriskblog.com)
- Keep an eye on the shallow industrial recession. (bonddad.blogspot.com)
- What does the Fed think is the natural rate of interest? (crossingwallstreet.com)
- A redacted version of the December 2015 FOMC statement. (alephblog.com)
- Let's hope the US hasn't missed an opportunity use cheap money to re-build fading infrastructure. (nytimes.com)
Earlier on Abnormal Returns
- Longform links: acquiring career capital. (abnormalreturns.com)
- What you may have missed in our Wednesday linkfest. (abnormalreturns.com)
- A new Essential Listening is up with takes on Superforecasting, A/B Testing and the search for the perfect cheeseburger. (blogs.cfainstitute.org)
