Earlier on
MoreLiver’s
PEOPLE
Finance blogger wisdom:
Advice
better ignored – Abnormal
Returns
Ten year
horizons – Abnormal
Returns
Unpaid
investor interns – Abnormal
Returns
Overlooked
topics – Abnormal
Returns
Jack Schwager Q&A: gain, pain and influence – Abnormal
Returns
Jack Schwager Q&A: setting stops and
asymmetric trades –
Abnormal
Returns
Ed Thorp on trend following – Abnormal
Returns
an excerpt
from Hedge Fund Market Wizards
Charlie Munger's 30 Best Zingers of All Time – The Motley
Fool
At the 2008 Berkshire Hathaway shareholder meeting, Vice
Chairman Charlie Munger railed against executive compensation, criticized his
physique, and said ethanol was "one of the dumbest ideas in the history of
the world." He then fell asleep on stage. In front of 40,000 people. This
is why people love him.
The Whale and the Quants – Dealbreaker
If you’d like some non-real-time insight into
the London Whale, may I highly recommend this oral history
Banking equity analyst at major bank: 'Some
days it's the best job in the world' – The
Guardian
HEDGE FUNDS
The New Hedge-Fund Clones – Barron’s
The newest generation of ETFs is obliterating
the line between active and passive management. But will they work?
The future of hedge funds – Felix
Salmon / Reuters
PSYCHOLOGY
Stress test for traders: Do you need a new job? – MarketWatch
Commentary: 20 questions reveal your trader’s
psychological profile
What Traders’ Testosterone Tells Us About
Markets – View
/ BB
An unusual study of traders’ spit may offer a
taste of the future in how we understand what drives markets -- and why they
aren’t as stable and efficient as we might hope.
Routine Ground Balls and the Traits of Real
Market Professionals
– Interloper
It isn’t All About Alpha – All About
Alpha
These are (1) “People who are successful
traders will have the ability to quickly admit that they’re wrong;” and (2)
“Discipline is also important.”
The Psychology of Risk: Trading and Poker – The
Trader
When former
traders go for poker (video)
Why Intuition Can be Better Than Analysis – Interloper
STRATEGY
Simple But Not Easy: The Case For Quantitative
Value (White Paper)
– Greenbackd
Passive value investing: Screening for
bargains – Musings
on Markets
The Investor’s Guide to the Low Volatility
Anomaly – Tradestreaming
When Everything Trades As One: Goldman Declares
War On ETFs, Says "May Generate Negative Alpha" – ZH
Lessons in Investment Management – IPO
Investing – The View from the Blue Ridge
“If you can get an IPO, don’t buy it. Only buy IPOs you can’t get.” – Anonymous
Beating the Market Is a No-Brainer - High
Average Return Takes Skill – Minyanville
How to best prepare for a lifetime of good
investing – Greenbackd
Buy value,
diversify globally, stay invested
FED
Communications Failure – Tim
Duy’s Fed Watch
It would be very helpful if at the next FOMC
meeting policymakers could agree to a specific path for additional easing, if
needed, and eliminate the ad-hoc approach.
The Diminishing Returns Of Central Planning – ZH
BofA’s
thoughts on why more printing would have no impact
REGULATION
What a UK bank ring fence looks like (maybe) – alphaville
/ FT
a key element of Basel III rules, its provisions on liquidity
buffers, are about to be watered down. Note that many, including this blog,
deemed Basel III to be too weak and flawed in many critical regards
MARKETS
Don't lose sight of the medium term – Humble
Student
The medium
term path for equities and the global economy. I came upon this BIS paper entitled "Characterising the
financial cycle: don't lose sight of the medium term!" The BIS researchers break economic cycles
into two components, a shorter business cycle and a longer financial cycle.
ECONOMICS
Shadow banking after the financial crisis – BIS (pdf)
Daniel K Tarullo, Member of the Board of
Governors of the Federal Reserve System, at the Federal Reserve Bank of San
Francisco Conference on "Challenges in global finance: the role of
Asia", San Francisco, California, 12 June 2012.
Financial crises and financial regulation -
thoughts after five turbulent years – BIS (pdf)
Stefan Ingves, Governor of the Sveriges
Riksbank and Chairman of the Basel Committee on Banking
Supervision, to the Swedish Economics Association, Stockholm, 13 June 2012.
How did the crisis challenge the central banking
as we knew it? – BIS (pdf)
Seppo Honkapohja, Member of the Board of the
Bank of Finland, at the Conference on "Financial and macroeconomic
stability: challenges ahead", Istanbul, 4-5 June 2012.
Demographic shifts - threats or opportunities? – BIS (pdf)
Christian Noyer, Governor of the Bank of France
and Chairman of the Board of Directors of the Bank for International
Settlements, at the Montreal conference: "Demographic shifts - threats or
opportunities?", Montreal, 11 June 2012.
Financial Stability: Measurement and policy – ECB
Vítor Constâncio, Vice-President of the ECB, at
the Conference of Financial Stability: Methodological Advances and Policy
Issues, Frankfurt am Main, 14 June 2012
Everything flows? The future role of monetary
policy – BIS (pdf)
Jens
Weidmann, President of the Deutsche Bundesbank, at the 2012 ZEW Economic Forum,
Mannheim, 12 June
2012.
New preface to Charles Kindleberger, The World
in Depression 1929-1939 – voxeu.org
Charles Kindleberger’s classic book on the
Great Depression was originally published 40 years ago. In the preface to a new
edition, two leading economists argue that the lessons are as relevant as ever.
"Inflation Targeting is Dead" – Economist’s
View
When productivity normalizes – alphaville
/ FT
“TFP growth is often associated with
technological progress but also reflects changes in utilization rates,
reallocations of resources among sectors, increasing returns to scale, and
measurement error,” as the NY Fed explains it. You’ll notice that pretty much
every single item here is difficult to quantify: most of them require
assumptions, and these assumptions sometimes require assumptions of their own,
which is why forecasts of future productivity are so frequently revised.
EQUALITY
Volatility Is Not Risk – Overmeyer Asset
Management / ZH
By providing stimulus after stimulus during
periods when the system was trying to cleanse itself, needed adjustments were
deferred to later periods and possibly even handed it off to subsequent
generations…Increasing debt levels was a politically convenient way to mask
declining real wages and a way for people to maintain their living standards.
We’ve been brainwashed – Joseph
E. Stiglitz / Salon
It's no accident that Americans widely
underestimate inequality. The rich prefer it that way