Quote of the Day
"Human inertia is a more powerful force than gravity, and traditional cap-weighted indices and index funds are entrenched as the standard. There’s a reason why equal-weighting — the New Coke of index funds — hasn’t taken off either."
(Robin Wigglesworth)
Chart of the Day

America’s biggest banks, except for JP Morgan Chase ($JPM) trade around book value. (chart via @ycharts)
Strategy
- The S&P is not a static index. (tker.co)
- How portfolio complexity is too much? (rogersplanning.blogspot.com)
Bonds
- The Treasury market is seeing signs of strain. (ft.com)
- CMBS spreads are near pandemic levels. (axios.com)
Big Tech
- Satya Nadella's focus on Microsoft ($MSFT) could be his biggest win. (computerworld.com)
- The success of AI is forcing Google ($GOOGL) to get its act together. (theinformation.com)
- Big Tech is pulling back on metaverse investments. (wsj.com)
- Three reasons why Apple Pay Later will come to dominate. (thebasispoint.com)
Finance
- Depositors continue shift from small to big banks. (wsj.com)
- How much is social media to blame for the demise of SVB? (economist.com)
- Banks are going to have to increase the rate of interest they pay. (axios.com)
TikTok
- TikTok parent ByteDance is hedging its bets with the launch of a new app Lemon8. (nytimes.com)
- TikTok has been lobbying Washington types behind the scenes for awhile. (politico.com)
Writing
- Ten tips for more effective business writing including 'Use shorter sentences for maximum clarity and efficiency.' (dariusforoux.com)
- 11 lessons learned from writing an investment newsletter for three years including 'Realise that nobody cares about you.' (investmenttalk.substack.com)
Economy
- Weekly initial unemployment claims are holding below 200k. (bonddad.blogspot.com)
- Rising inflation is bringing down real home prices. (calculatedriskblog.com)
- Economic momentum is reaching recession levels. (capitalspectator.com)
Earlier on Abnormal Returns
- Longform links: the age of average. (abnormalreturns.com)
- What you missed in our Wednesday linkfest. (abnormalreturns.com)
- Personal finance links: house price expectations. (abnormalreturns.com)
- Do you wonder why everything looks the same these days? (abnormalreturns.com)
- Are you a financial adviser looking for some out-of-the-box thinking? Then check out our weekly e-mail newsletter. (newsletter.abnormalreturns.com)