Book notes: “In summary, investors will likely find DIY Financial Advisor a well-reasoned, accessible and useful translation of financial markets research into simple personal practice.” (CXOAG)
Quote of the Day
"Times like this force you to think about, “Who am I and what am I trying to accomplish?” It’s necessary at times but not a fun process to go through."
(Conor Sen)
Chart of the Day

Public storage stocks like Public Storage ($PSA) have held up pretty well.
Markets
- New lows point to an extreme in sentiment. (jlfmi.tumblr.com)
- Individuals are historically bearish. (mebfaber.com)
- Defensive sectors and stocks are not surprisingly leading the market. (financetrends.blogspot.com)
- High yield spreads are finally getting attractive. (blog.abglobal.com)
Strategy
- Why we feel the need to gussy up the idea of asset allocation. (awealthofcommonsense.com)
- Bonds still serve as an effective portfolio diversifier. (awealthofcommonsense.com)
- Why David Einhorn's investor letters are worth a read. (thereformedbroker.com)
Offers
- Amazon shows more Golden Globes than Netflix. Check them all out with a 30-day Prime trial. (amazon.com)
- Sign up for Audible.com and get two free audio books including "The Confidence Game: Why We Fall For It...Every Time." (amazon.com)
Companies
- Italy is not impressed with the Apple ($AAPL) iPhone. (mattrichman.net)
- HBO is cutting its own cord in Spain. (qz.com)
- Smartwatches still aren't there. (recode.net)
Finance
- Goldman Sachs ($GS) is making bigger loans. (wsj.com)
- The Supreme Court is going to weigh into the debate over defining insider trading. (bloombergview.com)
Funds
- Only two alternative asset categories had positive returns in 2015. (news.morningstar.com)
- Actively managed funds are running out of excuses. (news.morningstar.com)
Global
Corporate cash
- Why are companies hoarding cash? (nytimes.com)
- Why investment around the world is so muted. (wsj.com)
Economy
- The American consumer is doing better than they have in a decade. (bonddad.blogspot.com)
- Inflation hung around 2% in December. (calculatedriskblog.com)
- Trucking volume held up in December. (calculatedriskblog.com)
Trends
- Why aren't Presidential candidates talking about the big trends facing the economy? (avc.com)
- Why we underestimate the technological changes going on around us. (pragcap.com)
Earlier on Abnormal Returns
- Personal finance links: being liquid. (abnormalreturns.com)
- What you may have missed in our Tuesday linkfest. (abnormalreturns.com)