Earlier on MoreLiver’s
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
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
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
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
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
What a UK bank ring fence looks like (maybe) – alphaville / FT
Walkback on Basel III Confirms Bank Victory on Regulation – naked capitalism
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
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.
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.
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