Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at some common myths about backtesting.

Quote of the Day

"In short, most stocks stink. Fortunately, while those wagering on coin flips must take a single path, equity investors can dramatically improve their odds by buying in bundles--that is, by purchasing stock funds that own dozens or even hundreds of securities, rather than just one."

(John Rekenthaler)

Chart of the Day

Stocks deleted from the S&P 500 have a tendency to outperform.