Book notes:

Marko Dimitrijević’s Frontier Investor: How to Prosper in the Next Emerging Markets “is a well-researched book, complete with detailed examples. It belongs in the library of every global investor.”  (Reading the Markets)

Quote of the day:

Fred Wilson, “I think selling is the hardest part of investing.”  (A VC)

Chart of the day:correlation_1016

Bonds have become a hedge for risk.  (Bank Underground)


Taxable munis are a better deal than corporate bonds at present.  (Barron’s)

Muni bond prices are well off their highs.  (FMD Capital)

Why the election doesn’t matter to the stock market.  (A Dash of Insight)

Kurtosis is the new volatility.  (FT Alphaville)


You can’t make it to the long-term without surviving the short-term.  (Collaborative Fund)

Don’t buy a stock just for its dividend yield.  (Institutional Investor)

Anecdotes are the fuel of confirmation bias.  (A Dash of Insight)

Why technical analysis gets a bad rap.  (Irrelevant Investor)



Mega-merger Monday:  AT&T ($T) is buying Time Warner ($TWX).  (Bloomberg)

Why AT&T ($T) may want to own Time Warner ($TWX).  (Recode)

The AT&T ($T)-Time Warner ($TWX) may be a strategic mistake but it isn’t anti-competitive. (Marginal Revolution)


Microsoft ($MSFT) is doing fine without LinkedIn ($LNKD)…  (Recode)

Can GoPro ($GPRO) turn itself around?  (Fast Company)

Chipotle ($CMG) is between a rock and hard place.  (Wired)


Twitter ($TWTR) has been valued as a tech company when it really is a media company.  (WSJ)

Twitter ($TWTR) is stuck between a rock and a hard place.  (Reuters)


How Apple ($AAPL) plans to make its way into the video business.  (Above Avalon)

Apple ($AAPL) could do itself some favors with a bundle of ‘Apple Prime’ services.  (Fortune)

Apple ($AAPL) is pulling back on its self-driving car ambitions.  (Bloomberg)

Apple ($AAPL) has lost the thread on software.  (Seth Godin)


Is the balance on your Starbucks ($SBUX) card money?  (FT Alphaville)

Warren Buffett’s favorite, the reinsurance business is plagued with oversupply.  (Bloomberg)

Private equity’s vitality has seen it replace investment banking as the most sought-after job in finance. (Economist)

Brexit loser: London. Brexit winner: New York City.  (Bloomberg)

Big trades are a rarity these days at the big banks.  (Business Insider)

SoFi wants to buy you a drink….and may be a loan.  (NYTimes)

Financial media

The new StockTwits home page is the new ‘front page’ of the financial web.  (Howard Lindzon) is aiming to be a full-fledged Bloomberg terminal competitor.  (NYTimes)

Hedge funds

Yet another threat to investment managers: clients, like Calstrs, bring money in-house.  (FT)

The hedge fund industry is undergoing an existential crisis.  (Bloomberg)

Family offices are the new hedge funds.  (Bloomberg)

Quant hedge funds want more data.  (FT)

Hedge fund launches are at a 16-year low.  (Bloomberg)


Harvard’s endowment is thinking about dumping its private equity holdings (at a discount).  (Ritholtz)

Harvard’s endowment has lost whatever organizational culture it had.  (A Wealth of Common Sense)

Asset allocation matters for everyone, including the Ivy League endowment funds.  (MPI)

Passive vs. Active

Core and explore‘ has been flipped on its head.  (Morningstar)

How do indexers do better than average, on average?  (Pragmatic Capitalism)

DFA has quietly become the sixth largest mutual fund manager using index-like techniques.  (WSJ)

The index fund revolution was accelerated by the rise of the Internet.  (Nerd’s Eye View)

Stockpickers are optimistic their way of doing business will return.  (WSJ)

Nevada’s state pension takes a stripped down approach to investing. (WSJ)

Quantitative Momentum

Despite some skepticism about individual stock momentum, Gary Antonacci still recommends Wes Gray and Jack Vogel’s new book Quantitative Momentum.  (Dual Momentum)

You can get Quantitative Momentum: A Practitioner’s Guide to Building Momentum-Based Stock Selection System for only $14.99.  (Alpha Architect)


Don’t confuse ETFs with indexing.  (WSJ)

The ETF Deathwatch for October 2016.  (Invest with an Edge)

ETF statistics for September 2016.  (Invest With an Edge)

Launching an ETF is no small (or cheap) endeavor.  (ETF)


Blackrock ($BLK) now manages $5 trillion, yes with a T, in assets.  (Dealbook)

A new framework for analyzing liquid alt funds. (Morningstar)

Merger arb fund returns have been squeezed down to next to nothing.  (Morningstar)

Will Danoff of Fidelity is a rarity these days.  (WSJ)

Self-indexers, like WisdomTree ($WETF) are on the rise.  (Barron’s)

Summing up a series on smart beta from the perspective of an index investor.  (Canadian Couch Potato)


It’s hard to find a currency doing worse than the British Pound YTD.  (Free exchange)

Emerging markets still trade at a discount to developed markets.  (ABGlobal)

Remember Peak Oil? It really should be Peak Oil Demand.  (Bloomberg)


15 important charts.  (Calafia Beach Pundit)

A recession is coming! A recession is coming! Who cares… (Ritholtz)

Demographics help explain the downshift in US economic growth.  (SSRN)

What CEOs had to say about the economy this week.  (Avondale Asset)

A succinct summary of the week’s economic events.  (Big Picture)

The economic schedule for the coming week.  (Calculated Risk)

Earlier on Abnormal Returns

Saturday links: wet wipe woes.  (Abnormal Returns)

Personal finance links: an act of rebellion.   (Abnormal Returns)

Where are you going to apply your passion?  (Abnormal Returns)

Mixed media

Why you should do your most distasteful task first thing in the morning.  (The Mission)

Four ways to achieve your dreams.  (What I Learnt on Wall Street)

There’s nothing wrong with being early for an appointment.  (FT)

Stop beating yourself up.  (Seth Godin)

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