Links - Markets, Economy & Investing

QUOTE OF THE DAY

“But what is surprising is that even the most sophisticated investors, traders and commentators continue to rely on predictions issued by those who have no record of success at such forecasts.” Paul Singer

CHART OF THE DAY

MARKETS ECONOMY AND INVESTING

Why the Fed Keeps Getting Detoured on the Rate NormalizationPath, Institutional Investor 

Everything Is More Expensive Than It Looks, WSJ.  "So if, as many analysts do, you discount future cash flows using present interest rates while extrapolating earnings from a period of much higher rates, he says, “you get a dangerous mismatch” that can lead you to overstate a stock’s value by 25% to 30%."  

What factors lead to better investment timing? 

Why the Brexit is Binary Bollocks for Investors, Attain Capital.  " We can’t help but notice that everyone’s all in a tizzy about this Brexit vote"  

Time to Rethink Your Love Affair With Bonds? FMD Capital.  " However, with yields this low, I have been starting to reign in my exposure to interest rate sensitive holdings and evaluate positions with closer scrutiny.  Put simply, I’m not blindly letting my passion for bonds cloud my judgement of generating positive total return and preserving capital."  

VIX Over 20 Can Be A Huge Problem, StockChart.com " a VIX above 20 is a common denominator of all bear markets."  

The many faces of quantitative investing.  TheResearchPuzzle.  

The ETF liquidity mirage, InvestmentNews.  "Are investors making a huge mistake in thinking ETFs are somehow more liquid than their underlying investments?"  

Will Stocks Diversify Bond Investments In The Future? AlphaArchitect.com.    "If stocks and bonds tend to have poor performance at the same time, this indicates that they may share a non-diversifiable common risk factor that generic correlation analysis doesn’t highlight."

The Collapse of FOMC Expectations. AlephBlog

How can individual investors beat institutional investors,  

The benefit of doing nothing. 

The Brutal Math of a 60/40 Portfolio, econompicdata.  

Digging Deeper Into Adaptive Asset Allocation. AlphaArchitect.  

Math Tests, Birthdays, O.J. Simpson, And TexasSharpshooters.  NewFound.  

The Importance of Asset Allocation vs. Security Selection: APrimer. GestaltU.  "Investment results depend mostly on the market you choose, not the selection of securities within that market…"  

It’s Time for Taxes, Jonathan Clemens, "today’s focus should be less on saving an additional 0.01% and, instead, we should devote our energies to the biggest investment cost of all, which is taxes. To that end, here are five rules for managing your portfolio:"