Book review: Richard L. Peterson’s Trading on Sentiment: The Power of Minds Over Markets is a “useful guide” to using sentiment in trading. (Reading the Markets)
Quote of the Day
"Mr Buffett’s particular genius is not that he is a great stock picker. His genius lies in the relentless clarity of his appreciation of the nature of business: focus on competitive advantage, find good management, give that management freedom with accountability only for results. And in his creation of a business model that follows those insights."
(John Kay)
Chart of the Day

Despite a decline in horse racing attendance Churchill Downs ($CHDN) has had a good run of late.
Markets
- Value stocks have underperformed for the better part of a decade. (crossingwallstreet.com)
- Low-vol strategies are at-risk of rising interest rates. (ai-cio.com)
Strategy
- This is one of the hardest things to do in investing. (latticework.com)
- Why hasn't Apple ($AAPL) stock gotten more bang for the success of the iPhone? (howardlindzon.com)
- Some companies Eddy is keeping an eye on. (crossingwallstreet.com)
Offers
- Subscribe to Modern Trader and one free month, the MT app and access to all past issues. (moderntrader.com)
- The ultra-cheap tablet, the 6" Amazon Fire, is now $10 off. (amazon.com)
- Sign up for Audible.com and get "The Confidence Game" for free. (amazon.com)
Companies
- How overvalued is Facebook ($FB)? (peridotcapital.com)
- Apple ($AAPL) needs to take more risk. (nytimes.com)
- Millions of people are paying for premium Tinder. (time.com)
Finance
- Is the battle for the LSE over? (blogs.wsj.com)
- Why Goldman Sachs ($GS) is making a push into retail banking. (washingtonpost.com)
Funds
- Two big myths about NAV calculations. (etf.com)
- Where institutional investment consultants could add value, if they so choose. (awealthofcommonsense.com)
Kindle Oasis
Economy
- The ADP Employment report showed a 156k increase for April. (calculatedriskblog.com)
- The April ISM Non-manufacturing index stayed strong. (calculatedriskblog.com)
- A graphical look at falling job tenures. (conversableeconomist.blogspot.com)
Earlier on Abnormal Returns
- Personal finance links: will your way to a will. (abnormalreturns.com)
- What you missed in our Tuesday linkfest. (abnormalreturns.com)
- What books Abnormal Returns readers purchased in April 2016. (abnormalreturns.com)