Links - Markets and Investing

QUOTE OF THE DAY

People are always willing to take money from their future self. -Dan Ariely

CHART OF THE DAY

   Still a world of hydrocarbons...

MARKETS AND INVESTING

Climbing the Wall of Worry, BlueSky.  "As it turns out unlike economic data, the market has a strong tendency to look forward instead of backward."  

Want To Know The Secret To Inefficient Prices? Lazy Prices. AlphaArchitect.  "In “Lazy Prices,” by Cohen, Malloy and Nguyen, [Harvard Bus.] the authors hypothesize that breaks from previous defaults and standardized reporting [i.e., the "lazy" part of the equation] will have significant implications for firms’ future stock returns."  

Diversification Opportunities In Fixed Income, NewFoundResearch.  "So despite all the potential dimensions upon which a fixed income portfolio could be diversified across, the Barclays Aggregate is actually highly concentrated.  One way to measure the internal diversification of this index is via a method popularized by Attillio Meucci called effective number of bets."    

How to Psychologically Prepare for Bear Markets, Bob Veres. "…the next bear market will come like [a] ‘thief in the night,’ and none of us can predict its hour or day."   

Winning by Playing Small Ball, Cullen Roche.  " In the world of investing the little things often add up to big problems." 

Janet Yellen's Inflation Problem Tim Duy.  http://economistsview.typepad.com/timduy/2016/06/janet-yellens-inflation-problem.html

The Proof That Most Investors Are Their Own Worst Enemy, Forbes.  " It’s our built-in psychological biases that lead to bad decisions and ultimately drive our long-term financial success."  

Saving Irrational Investors from Themselves, Dan Ariely at Institutional Investor.

As Wall Street Frets Over Trump, a Sure-Fire Short TradeEmerges, Bloomberg.  " “The only thing you are certain of is that if Trump wins, the Mexican peso will be weaker,” said Dirk Willer, a strategist at Citigroup in New York."  

Why Savers Might Miss Out on the Benefits of Higher InterestRates.  Wesley Gray.  

The Most Boring Rate Hike Cycle Ever? Attain Capital.  

The Returns Gap - The difference between fund returns and investor-in-fund returns.

German 10-Year Government Bond Yields Dip Below Zero asBrexit Fears Hit Market. WSJ