The plague has broken and I can breathe again. Here is what I’m reading this morning:

• U.S. Equity Investors Ignore Warning Signs (FT)
• Why Choose Stocks When Saving for Retirement? (Fidelity) but see Passive vs. Active Investing: Darts, Monkeys and Pros (Investing Caffeine)
• Gold loses luster as broader market fears fade (WSJ)
• Caterpillar Escaped $2.4 Billion Tax With Swiss Maneuver (Bloomberg)

continues here

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.

14 Responses to “10 Tuesday AM Reads”

  1. RW says:

    A bit of history.

    Going off gold and the basis for Bretton Woods (ht WCEG)

    Experience is teaching us a counterintuitive lesson: the way to control leads away from stability.

  2. VennData says:

    Obamacare Sign-Ups May Hit 7M

    http://www.nbcnews.com/id/54834936/ns/local_news-chicago_il/#.UzrJ6fldWSo

    LIES! none of the good folks down at the club have signed up.

    – Jack Welch

  3. hue says:

    Everything wrong with capitalism, as explained by Balzac, ‘House’ and ‘The Aristocats’ (Quartz)

    A growing number of primary-care doctors are burning out. How does this affect patients? (WaPo)

    Why the Best Offices Are Like Jails (WSJ)

  4. blackvegetable says:

    S&P 500 outperformed 71.9% of actively managed large cap funds;
    S&P MidCap 400 outperformed 79.1% of mid cap funds;
    S&P SmallCap 600 outperformed 85.5% of small cap funds.

    This appears counter-intuitive. One would think that the more “efficient” the market, the less likely outperformance.

    Would this change if it was return weighted?

    Or is it a matter of “the more active managers” the higher the level of sub par performance?

    • Paul says:

      Remember, fees costs and taxes run with active investors.

    • Iamthe50percent says:

      28.1% of actively managed large cap funds outperformed the S&P 500. That’s impressive, except over what timeframe? I’ve seen funds with great two year records fall flat on their face in the third year. Still, it seems like one should be able to eliminate some companies teetering on the brink from the 500 and come out ahead.

  5. swag says:

    40 Years Ago Today: Television Debuted at CBGB on the Bowery (March 31)

    “Those of us who’ve been marking punk’s 40th anniversary this month – a contentious dating scheme, I know – pin our claims on a show that happened 40 years ago today, when the band Television played its first set at CBGB + OMFUG, the club that occupied 315 Bowery from the end of 1973 to 2006.”

    http://www.boweryboogie.com/2014/03/40-years-ago-today-television-debuted-cbgb-bowery/
    _______________

    “There are no ghosts in the paintings of Van Gogh, no visions, no hallucinations. This is the torrid truth of the sun at two o’clock in the afternoon.” —Antonin Artaud, Van Gogh, the Man Suicided by Society

    http://hyperallergic.com/117673/artaud-and-van-gogh-against-society/
    _______________

    Felix Salmon may be right about Michael Lewis’ new book re: the little guy

    http://blogs.reuters.com/felix-salmon/2014/03/31/michael-lewiss-flawed-new-book/

    but was Salmon less full of it in his “Flash Crash” vlog re: the little guy?

    https://www.youtube.com/watch?v=tCMTeweaiCQ

  6. willid3 says:

    US fear of to big to fail?

    oddly enough its not just banks that qualify as to big to fail. lots of other major companies would have major impacts on the economy if (or when) they fail.

    ex

    Consider one scenario: Bank A is a large financial institution that lends to businesses of all sizes. Firm B is a medium-sized manufacturer of components for mobile phones sold by electronics giants and depends on Bank A for funding its inventory. If Bank A collapses and stops lending, Firm B would be unable to pay its suppliers and provide electronic parts to phone makers.

    http://finance.fortune.cnn.com/2014/03/31/why-americas-fear-of-too-big-to-fail-is-irrrational/?section=magazines_fortune&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+rss/magazines_fortune+%28Fortune+Magazine%29

  7. willid3 says:

    new stock exchange?
    and wall street doesnt seem to want to use it. wonder why

    http://qz.com/193630/why-banks-hedge-funds-and-silicon-valley-all-want-their-own-stock-exchanges/

  8. willid3 says:

    chamber of commerce wants to have a rapprochement with silicon valley? wonder how that will work out, seems like a lot of tech firms left because it wasn’t responsive to them

    http://online.wsj.com/news/articles/SB10001424052702304157204579473612914896426?mod=LS1

  9. Willy2 says:

    http://www.nakedcapitalism.com/2014/03/can-protests-university-southern-maine-flashpoint-reverses-mallification-american-higher-education.html

    The University System of Maine (USM) must reduce spending. But the headquarter of USM is spared. but the teaching staff is reduced and programs curtailed while at the same time USM wants to spend $ 50 million on new teaching facilities.

  10. Jojo says:

    Re: The pitchforks in China article

    Living in the already expensive SF Bay Area, now I know how people from a country where the average yearly salary is something like $5k can come to the USA and pay cash for houses, drive high-end expensive cars and seemingly throw cash around like drunken sailors.

    Whew. It’s all easy when you’re a thief.