Review: The Diversity Bonus: How Great Teams Pay Off in the Knowledge Economy by Scott E. Page explains the benefits of cognitive and identity diversity. (Reading the Markets)
Quote of the Day
"Over the 30 years since the crash, I have witnessed time and again some of the smartest people in the world undone by making emotional investment decisions based on very short-term events."
(James O'Shaughnessy)
Chart of the Day

The main active bet of the smart beta universe is short exposure to the Size Factor (overweighting of smaller companies).
Markets
- Which sectors are overvalued today. (intrinsicinvesting.com)
- You can't like gold unless you think real yields are going lower. (marketanthropology.com)
- A falling dollar has pushed overseas equity markets higher in 2017. (macromon.wordpress.com)
- No one is recommending long positions in the US dollar. (themacrotourist.com)
Strategy
- The ongoing myth of 'the easy money' having already been made. (pensionpartners.com)
- Capital allocators don't want high daily volatility. (martinkronicle.com)
- Why cash has high 'option value' today. (macromon.wordpress.com)
- Ben Carlson, "Being right is easy. How you handle being wrong is the true test of any successful investor or decision-maker." (awealthofcommonsense.com)
Books
- Dan Ariely's "Payoff: The Hidden Logic That Shapes Our Motivations" is just $3.99 for the Kindle. (amazon.com)
- Ron Chernow's "Grant" is going to be a huge Fall read. (amazon.com)
- Why don’t you read more? No time, right? Try the Blinkist app! Read or listen to the key insights from the best nonfiction books in a matter of minutes! (blinkist.com)
Companies
Finance
- Being able to perfectly predict earnings is less valuable than it has ever been. (ftalphaville.ft.com)
- Trade of the moment: long mall bonds, short mall stocks. (wsj.com)
Fund biz
Invest in Asia Virtual Summit
Global
- Just as China's weight is growing in emerging market equity markets so it is in emerging market bond indices as well. (gmo.com)
- UK GDP growth is slowing dramatically. (qz.com)
Economy
- Nobody expects the Fed to raise rates at its September meeting. (bloomberg.com)
- The Chemical Activity Barometer is steady. (calculatedriskblog.com)
- There is little risk of a US recession at the moment. (capitalspectator.com)
- Robots and free trade are putting pressure on worker wages. (bloomberg.com)
- Cities are doing well by redeveloping their (river) waterfronts. (nytimes.com)
Earlier on Abnormal Returns
- Personal finance links: a lingering death. (abnormalreturns.com)
- Skill, luck and the 1987 stock market crash. (abnormalreturns.com)
- What you missed in our Tuesday linkfest. (abnormalreturns.com)
- Research links: dividend attitudes. (abnormalreturns.com)