Archive for May, 2009

• Sunday links: model testing
  abnormalreturns, May 31st, 2009 at 9:22 pm, Comments: 0

  “Your fund should lend out your securities, but the proceeds should go to you…The current system, where they keep half the gains and stick you with all the risks, has got to go.”  (WSJ also Felix Salmon)
  The BRIC markets have bounced back nicely in 2009.  (Bespoke)
  Stock picking is dead…until the government gets out of the [...]

• Friday links: the price of risk
  abnormalreturns, May 29th, 2009 at 1:20 pm, Comments: 0

  “Now that we are in a confirmed rally, things could get silly to the upside so if you are pigheaded about the world ending, best stand aside.”  (Howard Lindzon)
  “It’s hard to overrate the value of taking a hard look at investing assumptions. By continually putting an expected price on risk, we become better investors.”  (Capital [...]

• Thursday links: duration disaster
  abnormalreturns, May 28th, 2009 at 1:10 pm, Comments: 0

  Why does the yield curve continue to steepen?  (Aleph Blog , Mish, Atlantic Business)
  Mortgage rates are moving higher.  (Accrued Interest, Calculated Risk, FT Alphaville, Bloomberg)
  The reversal in high yield bond performance is stunning.  (EconomPic Data)
  How appropriate is a 100% bond portfolio?  (IndexUniverse)
  Why is gold such a “snoozer” of late?  (Clusterstock)
  Stocks that have continued to rally [...]

• May you live in interesting times
  abnormalreturns, May 28th, 2009 at 9:52 am, Comments: 0

  While the source of the above phrase is in some dispute, it is generally assumed to be a curse, rather than a blessing.  It is obvious that we are now living in “interesting times.”   That brings us to the topic of the economic crisis and its effect on the rapidly burgeoning econoblogosphere.
  Abnormal Returns reader John [...]

• May you live in interesting times
  abnormalreturns, May 28th, 2009 at 9:52 am, Comments: 0

  While the source of the above phrase is in some dispute, it is generally assumed to be a curse, rather than a blessing.  It is obvious that we are now living in “interesting times.”   That brings us to the topic of the economic crisis and its effect on the rapidly burgeoning econoblogosphere.
  Abnormal Returns reader John [...]

• Wednesday links: the last tick
  abnormalreturns, May 27th, 2009 at 12:44 pm, Comments: 0

  “Investing is an act of faith.”  (behavior gap)
  Members of the perma-bear cult, “..never ever or rarely make money.”  (TheStreet)
  “..everyone is a product of the last tick.”  (footnoted)
  What say ‘Tobin’s Q‘ about current market valuations?  (Trader’s Narrative)
  “Is there an enduring small-cap value effect? It certainly looks that way, although it’s likely to be a rough ride [...]

• Tuesday links: hedge fund masters
  abnormalreturns, May 26th, 2009 at 2:08 pm, Comments: 0

  10 ETFs trading above their 200 day moving averages.  (Kirk Report)
  How to get to “600 – 840 as a sensible S&P500 target.”  (Zero Hedge)
  What stocks are included in a “hedge fund masters portfolio“?   (World Beta)
  “Hedge funds have been accumulating cash to pay redeeming investors. If withdrawals are canceled, that money can go straight back [...]

• Sunday links: warrant pricing
  abnormalreturns, May 24th, 2009 at 3:14 pm, Comments: 0

  Due to the Memorial Day holiday there will be no linkfest tomorrow.  We hope all of our readers enjoy the holiday!
  What Ben Graham would think of the stock market after its recent rally.  (WSJ)
  A look at S&P 500 company valuations:  the confusion continues.  (Zero Hedge)
  The week after Memorial Day seems to be bullish for both [...]

• Friday links: the reflation trade
  abnormalreturns, May 22nd, 2009 at 12:55 pm, Comments: 0

  A reflation trade portfolio.  (IndexUniverse also Pragmatic Capitalist, Reformed Broker)
  A quick look at some world stock markets.  (Trader’s Narrative)
  The first day of the month has been a consistent winner for the stock market.  (Crossing Wall Street)
  Credit spreads are narrowing.  What does this imply for the equity market?  (EconomPic Data)
  Treasury yields are higher and the curve [...]

• Thursday links: diversification definition
  abnormalreturns, May 21st, 2009 at 12:43 pm, Comments: 0

  For many investors their definition of diversification is changing.  (NYTimes, Bull Bear Trader)
  Do you believe the US Dollar is going to tank?  Think international equities.  (Barron’s, BusinessWeek)
  Muni bonds are back to pre-crisis levels.  (TraderFeed)
  “Wall Street will market the VIX as bullish no matter what it does.”  (Daily Options Report also Trader’s Narrative, Freakonomics)
  The VIX:VXV ratio [...]