I am off to Denver, than Vancouver. Here is my Sunday morning Aeroplane reading:

• You Have Been Calling for A Crash for 6 Months and Been Wrong, Now What? (Dragonfly Capital) see also Buy and hold wins again (MarketWatch) [chart at bottom]
• If You’re a Bond Investor, Beware of the Seesaw (NYT)
• Does the Fed funds rate even matter? (FT Alphaville) see also Congress Gives Bernanke A Hero’s Send-Off (Real Time Economics)
• Maggie’s ghost: what is haunting Europe (the unbalanced evolution of homo sapiens)
• The hard-money people throw Gene Fama under the bus (Noahpinion)
• The Myth of China’s Economic Reform (Bloomberg) see also China Ain’t All That: The U.S. Is Still Tops (Yahoo Finance)
• The Forgotten Funds That Are Suddenly Drawing Crowds (Moneybeat)
• Here’s how Detroit’s bankruptcy will actually work (Wonkblog) see also Detroit and Pandora’s Box (MBS Litigation Commentary For Speculators)
• A Dozen Things I’ve Learned From Michael Mauboussin About Investing (25iq)
• Worldwide Honey Bee Collapse: A Lesson in Ecology (Nation of Change)

What are you reading?

 

Can Market Timers Beat the Index?
Graphic
Source: WSJ

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

17 Responses to “10 Sunday AM Reads”

  1. rd says:

    An interesting intersection of the infrastructure issues covered here frequently and the ecological issues such as the honey bee story:

    http://www.washingtonpost.com/local/lake-jackson-dam-repairs-leave-waterfront-homeowners-without-their-lake/2013/07/20/d69ee6c0-e3ed-11e2-a11e-c2ea876a8f30_story.html
    http://www.insidenova.com/news/local/manassas/funds-approved-to-start-lake-jackson-dam-repairs/article_cf07d7f0-ae1e-11e2-bac1-001a4bcf887a.html

    85 years ago a dam was built on a tributary of the Potomac. It probably provided benefits like low-head hydro-electric power at the time. Today though, it exists largely to provide a lake for boating. Dam inspections indicated that it was in poor condition and was unsafe to operate as a water retaining structure, so it has been draining. The funding for the dam repairs will be provided by the county but people are questioning if public funds should be spent to maintain a lake that has no public access.

    Undiscussed are the numerous impacts that damming tributaries to the Chesapeake estuary have caused over the past century. They are one of many reasons that the Chesapeake is having significant ecological issues. There is anotehr dam downstream of this one, so allowing a free running creek at this location certainly won’t solve the issues that this tributary face for returning to a high ecological function role, but it should be on everybody’s minds when reviewing things like this project. There are thousands of these low-head dams throughout the Eastern seaboard that prevent fish spawning runs and trap sediment in warm water reservoirs.

  2. 873450 says:

    UK government selling 80% of National Health System’s (NHS) state owned, self sufficient, not for profit blood supply to PE firm Bain Captial, basically inserting privately owned, profit making toll booths into Britain’s plasma supply chain.

    http://www.independent.co.uk/news/uk/politics/is-there-no-limit-to-what-this-government-will-privatise-uk-plasma-supplier-sold-to-us-private-equity-firm-bain-capital-8718029.html

    “Is there no limit to what this Government will privatise?’: UK plasma supplier sold to US private equity firm Bain Capital – Sell-off puts blood supply at risk, warns Lord Owen

    “Due to safety concerns following the emergence of ‘mad cow disease’, or vCJD, NHS … was unable to secure a long-term ‘safe’ blood supply … following the vCJD outbreak, the Government spent £50m in 2002 on the US firm that provided all of BPL’s plasma. … The majority of NHS hospital plasma supplies come from PRUK, which sources all its plasma from low contamination risk groups in the United States across DCI’s network of 32 donor centres.

    “Everything must go? Put up for sale
    Royal Mail
    Forensic Science Service
    Student loans
    School playing fields”

  3. Conan says:

    You hear the statement with some frequency that the economy and the stock market are two different things. With this in mind I found the comment at the end of this article interesting:

    http://bonddad.blogspot.com/2013/07/failed-narratives-reply-to-barry.html

    Anonymous said…

    Stocks rallied over 1000 points from Nov 1994 through Mar 2000, stocks have rallied over 1000 points since the Mar 2009 lows, SO, in theory the economic metrics should be similar…right? Let’s see

    11/94 – 3/2000

    Avg GDP growth: 4.20%
    Avg Unemployment rate: 4.91%
    Avg Credit Growth: 8.21%

    3/2009 – Current

    Avg GDP growth: 1.59%
    Avg Unemployment rate: 8.86%
    Avg Credit Growth: .61%

    Maybe the only difference is one was the last part of a Secular Bull Market and the other was a Cyclical Bull move in a Secular Bear market??? or it’s just true the Stock Market is one thing and the the Economy is another?? or ???.

    Any way I found the comment interesting.

    • “Philadelphia officials say it saves $1 million a year in staff and fuel costs. Raleigh, N.C., officials also claim savings, and say trash doesn’t blow out of the closed Big Belly boxes like it does from traditional cans.”

      Why do you think spending $4000 to save 25X that is a waste of taxpayer dollars?

  4. Conan says:

    Here is an article to go with your chart:

    5 Tips for Better Index Investing

    http://www.rickferri.com/blog/investments/5-tips-for-better-index-investing/

  5. DeDude says:

    Remember the purpose of corporate media is not to inform you but to scare you into coming back for more “information”

    http://www.cepr.net/index.php/blogs/beat-the-press/unfunded-pension-liabilities-are-1-trillion-not-38-trillion-never-take-anything-in-a-washington-post-editorial-at-face-value

    The pension liabilities of Detroit has given them another chance to blow a small problem up to something big. An important note is to compare the size of these “liabilities” to the “discounted value of GDP” over the next 30 years (roughly $447 trillion). For social security the relevant number is GDP for the next 75 years. Suddenly the “we are all going to die unless we dismantle pensions and rob regular people of their hard earned money” story face the turns into a “there is a potential problem that we should consider getting at with minor adjustments now”.

  6. RW says:

    lest we forget.

    GunFAIL XXVII

    Definitely some unusual occurrences this week, including two in-hospital #GunFAIL incidents, bringing us to a total of three in the last three weeks. We also had three armed criminals shoot themselves this week, which isn’t all bad, I suppose. Though I will note that one of them shot himself while the police were after him, and the sound of the shot prompted an officer to draw his own weapon, fire nine shots, and miss every time (unless you count hitting a nearby park bench and a tree). …

    Tough time for the teenagers this week. The kid victims of #GunFAIL this week were 2, 5, 9, 11, 12, 12, 13, 14, 15, 16, 16, 16, and 17. Only three of those kids were accidentally shot by adults, by the way. Five shot themselves, and six were shot by other kids, the youngest shooter being six.

    NB: Another purpose of corporate media – dig rabbit holes to hide histories.

  7. Our military industrial complex has become an entitled class.

    “Gen. Philip M. Breedlove, the Air Force four-star who commands NATO, gets a 15,000-square-foot, 19th century chateau in Belgium. . . .Generals and admirals say they need large houses with high security — as well as cooks and gardeners — because they often host visiting dignitaries or preside at ceremonial events.”

    Report questions costs of villas and mansions for top military brass (LATimes)

    http://goo.gl/YejOa

  8. jimcos42 says:

    re Beating the Market

    So, for the past 13.5 years, the mixed portfolios have returned about 3.0% to 3.5% nominal annualized.
    Indeed we live in an era of low returns.

    To complete this picture, a total bond fund (VBMFX, for example) would have returned about 5.6% annually.

    Of course, none of this has anything to say about future returns, just as an equivalent survey in the late 1990′s would not have had anything to say.

    I’m putting all this in my file labelled 2030, and plan to stay 40/60 equities-to-fixed income with rebalancing as needed while I get on with the rest of my life.

  9. MojaveMax says:

    Boycott Dubai.

    Norwegian woman in Dubai sentenced to jail after reporting rape to police

    http://www.smh.com.au/world/norwegian-woman-in-dubai-sentenced-to-jail-after-reporting-rape-to-police-20130722-2qd44.html

  10. rj chicago says:

    Barry – where did you dine out there in Denver? Did you take any of the recs that readers offered?
    God’s country baby – that is where it is at!!!

    • Euclid last night, Magic Mushroom yesterday, dunno what they have planned for lunch yet!

      • maspablo says:

        is that Mellow mushroom or ..? maybe u enjoyed the outdoors and day and cleared your mind

      • heh heh I’ll never tell

      • rj chicago says:

        Barry:
        Next time you head to the mile high city – ‘high’ there now takes on a different meaning than when I was growing up in the big D – GO TO ANY small hole in the wall Mexican place along Santa Fe Drive – And though a bit out of the way head up to downtown Arvada – the old section along Wadsworth Blvd. There are a couple of places there that are quite good – Italian. Avoid hill top – too trendy.
        rj

  11. rd says:

    It appears that busienssmen in Virgina are viewing socially conservative political agendas as bad for business as it impacts their ability to have a good diverse work force:

    http://www.bloomberg.com/news/2013-07-22/virginia-republican-suffers-abortion-backlash-from-donors.html

    If the GOP is now losing the support of rich older white guys, how many constituencies will they have left?