Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at why so many portfolios are so inefficient.

Quote of the Day

"The magic of diversification is that it allows investors to keep more of their money invested in higher risk assets, with commensurately higher expected returns, while lowering the overall risk of the portfolio."

(ReSolve Asset Management)

Chart of the Day

The VIX has a competitor.