Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at how not to ‘model noise.’

Quote of the Day

"Valuations are helpful for gauging expected returns, so it isn't prudent to completely ignore them. If they're unusually high, future returns will likely be lower than normal, and vice versa. However, it probably isn't a good idea to use them to make big tactical adjustments among fund investments."

(Alex Bryan)