Book notes: Lessons learned from Greg Ip’s Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe. (EconLog)
Quote of the Day
"In the stock market, short term trends are mostly random and heavily influenced by luck. To succeed, you must ignore them and invest in strategies that have the highest probability (base rate) of succeeding in the future."
(Jim O'Shaughnessy)
Chart of the Day
Ben Carlson, “No one ever complains about upside volatility.”
Markets
- The slope of the yield curve is still positive. (news.morningstar.com)
- Why isn't the $VIX higher? (jlfmi.tumblr.com)
Strategy
- Why most investors can't psychologically handle a bear market. (thereformedbroker.com)
- Why value investors should ignore overall market valuations. (greenbackd.com)
- Stock risk doesn't necessarily dissipate over time. (institutionalimperative.com)
- Why we so love to make predictions. (timharford.com)
Offers
- Amazon shows more Golden Globes than Netflix. Check them all out with a 30-day Prime trial. (amazon.com)
- Sign up for Audible.com and get two free audio books including "Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe." (amazon.com)
- Take WiFi with you everywhere with Karma Go. Use my code for $10 off yours now! (yourkarma.com)
- Do you get our daily e-mail newsletter? You should. Sign up here. (abnormalreturns.com)
Companies
- Wal-Mart ($WMT) is shrinking its store footprint. (bloomberg.com)
- Why is it so difficult for giants like Wal-Mart to shift strategy. (bloomberg.com)
Finance
- The exodus from big banks to hedge funds is waning. (bloomberg.com)
- The valuation on publicly traded SaaS companies have come down a great deal in the past year. (tomtunguz.com)
Economy
- Industrial production fell in December. (calculatedriskblog.com)
- Demographics matter but their impact is uncertain. (ftalphaville.ft.com)
Earlier on Abnormal Returns
- Podcast links: extraordinary workplaces. (abnormalreturns.com)
- Cost is the new performance. (abnormalreturns.com)
- What you may have missed in our Thursday linkfest. (abnormalreturns.com)
