Archive for November, 2008

• Sunday links: doubling down
  abnormalreturns, November 30th, 2008 at 3:20 pm, Comments: 0

  Government bonds have performed well, but what happens when new issuance really hits home?  (Economist.com)
  Keep an eye on 10 year Treasury yields for a clue on risk aversion.  (VIX and More)
  30 year mortgage rates are down.  (Bespoke)
  Carl Icahn is buying senior debt.  (Barrons.com)
  After 15 years of being overvalued, the stock market is back to “fair [...]

• Wednesday links: day traders are back
  abnormalreturns, November 26th, 2008 at 12:52 pm, Comments: 0

  Abnormal Returns will be taking the rest of the Thanksgiving week off.  We trust you have a pleasant holiday.  See you next week.
  Don’t count on today’s dividends to support stock prices.  (naked capitalism)
  The opportunity in ‘fairly priced’ markets.  (FT.com)
  James Montier is really bullish.  (Bloomberg.com)
  Equity market volatility is now old hat.  (Market Movers also Daily Options [...]

• Tuesday links: money spent wisely
  abnormalreturns, November 25th, 2008 at 12:41 pm, Comments: 0

  Did you just miss the bottom?  (Silicon Alley Insider)
  Who’s to blame for the downfall of Citigroup (C)?  (Market Movers)
  The many misunderstandings surrounding Berkshire Hathaway (BRKA).  (Clusterstock also Financial Crookery)
  Is Google (GOOG) now a value stock?  (Crossing Wall Street)
  Ten year returns for the S&P 500 are nearing levels not seen since the 1940s.  (Trader’s Narrative)
  Want to [...]

• Monday links: banks are different
  abnormalreturns, November 24th, 2008 at 12:38 pm, Comments: 0

  Citigroup (C) gets a (lenient) lifeline.  (breakingviews, Market Movers, The Baseline Scenario, Crossing Wall Street, Economist’s View, Big Picture)
  Why Citigroup and not General Motors?  “Banks are different.”  (Curious Capitalist)
  Fear beats greed.  What next?  (FT Alphaville)
  TIPS vs. Treasuries.  Quite a discrepancy.  (WSJ.com also knzn)
  Remember that panic in Morgan Stanley (MS) back in September.  An examination of [...]

• Sunday links: survival mode
  abnormalreturns, November 23rd, 2008 at 8:59 pm, Comments: 0

  The last best hope for Citigroup (C):  good bank, bad bank.  (NYTimes.com, WSJ.com,
  Finally the one of the few constants at Citigroup over the past few years, Bob Rubin, is coming under scrutiny.  (Market Movers, naked capitalism)
  Many hedge funds are in “survival mode.”  (WSJ.com)
  “There has, in other words, been nowhere to hide from the collapse of [...]

• Friday links: terrific timing
  abnormalreturns, November 21st, 2008 at 1:27 pm, Comments: 0

  “So yes, Berkshire might be looking cheap — but other stocks are looking cheaper, and always remember that Berkshire, like any insurance company, is very highly leveraged, with contingent liabilities many times higher than its asset base.”  (Market Movers also MarketBeat, Daily Options Report)
  “Suffice to say that the surge in Treasuries — and rise in [...]

• Thursday links: another $1 trillion
  abnormalreturns, November 20th, 2008 at 1:00 pm, Comments: 0

  Do we need another $1 trillion to recapitalize the financial system?  (FT Alphaville, Real Time Economics)
  We have been waiting for this story.  Financial services CEOs in the spotlight for reaping profits from stock sales in the past couple years.  (WSJ.com)
  Records were made to be broken.  (Big Picture)
  The 2002-2007 bull market is gone.  (Floyd Norris, Bespoke)
  Four [...]

• Wednesday links: yield crossover
  abnormalreturns, November 19th, 2008 at 1:03 pm, Comments: 0

  An historic yield crossover.  The dividend yield of the S&P 500 now roughly equals that of the ten-year Treasury yield.  (Barrons.com, TheStreet.com)
  The behavior of the VIX is not all that unprecedented.  However with a little bit of time we just might get to unprecedented.  (Daily Options Report)
  Crisis or not, top performers on Wall Street still [...]

• Wednesday links: yield crossover
  abnormalreturns, November 19th, 2008 at 1:03 pm, Comments: 0

  An historic yield crossover.  The dividend yield of the S&P 500 now roughly equals that of the ten-year Treasury yield.  (Barrons.com, TheStreet.com)
  The behavior of the VIX is not all that unprecedented.  However with a little bit of time we just might get to unprecedented.  (Daily Options Report)
  Crisis or not, top performers on Wall Street still [...]

• Tuesday links: pirate punditry
  abnormalreturns, November 18th, 2008 at 12:39 pm, Comments: 0

  U.S. TIPS point to deflation.  (FT.com also Capital Spectator)
  Everything is trading together.  (MarketBeat)
  Stock market expected returns.  (Mankiw Blog)
  The S&P 500 is trading some 32% below its 200 day moving average.  (Bespoke)
  Paulson & Co. has begun buying beaten down mortgage securities.  (Clusterstock)
  Some one is making money off of recent market turbulence.  (FT Alphaville)
  Historical volatility measures are [...]