Quote of the day

Joshua Morgan Brown, “Economics is extremely important to understanding the world in which we live, but the linear application of it can be deadly with actual money on the line.”  (The Reformed Broker)

Chart of the day

MCUSGDP_1013

Warren Buffett’s favorite market indicator shows the US stock market is overvalued.  (FT Alphaville)

Markets

What the stock market has historically done in the last 20 days of a bull market.  (Avondale Asset)

Investor sentiment is complacent, what about the $VIX?  (Adam Warner)

The opportunity in bonds.  (Humble Student)

Strategy

What happens when risk gets ‘unstuck.’  (FT Alphaville)

The (big) problem with market neutral strategies.  (Mebane Faber)

Why ‘Sell in May‘ just won’t go away.  (Enterprising Investor)

Downside risk mitigation is not all that complicated.  (Rick Ferri)

A prime example of selection bias.  (Big Picture)

Companies

Cash continues to pile up at Berkshire Hathaway ($BRKB).  (Bloomberg)

Why Apple Stores are so important to the brand.  (Asymco)

When CEOs talk down their own stock.  (Unexpected Returns)

Wall Street vs. Silicon Valley

Finance vs. technology: which is a more important career?  (Dealbook)

Should we be worried that Harvard MBAs are headed to Silicon Valley?  (NetNet)

Finance

The CFTC is finally setting rules to prevent another MF Global.  (Dealbook)

Do life insurers have a “shadow insurance” problem?  (Freaknomics)

What happened to the world of finance?  (Random Roger)

ETFs

October was a big month for ETF launches.  (IndexUniverse)

Plain vanilla ETFs dominate when it comes to AUM.  (IndexUniverse)

Economy

Weekly initial unemployment claims continue to bottom out.  (Calculated Risk)

The Chicago PMI for October blows past expectations.  (Business Insider)

Is the Fed ready to start tapering?  (Tim Duy)

Earlier on Abnormal Returns

What you may have missed in our Wednesday linkfest.  (Abnormal Returns)

Mixed media

The world is waiting for the next great technology critic.  (New Yorker)

The (tech) world now runs on whiteboards.  (Farhad Manjoo)

Don’t take money from people you don’t like.  (A VC)

What are the world’s chat services worth?  (Quartz)

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