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Sunday, December 23

23rd Dec - Weekender: Trading & Markets




Previously on MoreLiver’s:

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Murphy, Trading with Intermarket AnalysisReading The Markets

Euro Money Market Study Dec-2012ECB (pdf)

Global safe assets Will the world run out of ‘safe assets’ and what would be the...Alea

The future of financial globalizationBIS
Abstract of "The future of financial globalisation", proceedings of the 11th BIS Annual Conference, 21-22 June 2012.

Modern Portfolio Theory is for NitiotsMercenary Trader

Counterparties 2012 - The year of bank fraudFelix Salmon / Reuters

The Economy and Stocks: A Big DisconnectNYT

Invert, Always InvertThe Psy-Fi Blog
Charlie Munger uses the Pythagorian proof that the square root of 2 is irrational as an example of inversion – because they started by trying to prove it wasn’t irrational and wound up with a contradiction that could only be resolved by assuming it was.  This idea – that we should try to prove the opposite of what we really want  – is the key concept behind inversion.

Dark Pools, Internalization, and Equity Market QualityCFA Institute / The Big Picture

Investment Fads and Themes by Year, 1996-2012The Reformed Broker

Damodaran’s 10 Rules for Addressing Uncertainty in Investment ValuationsCFA Institute

Book Review: The Snowball
Part OneThe Aleph Blog
Part TwoThe Aleph Blog
Part ThreeThe Aleph Blog


Part Four The Aleph Blog
EpilogueThe Aleph Blog
This book is complex.  It’s a great book, but you have to appreciate why it was designed the way it was.  Buffett is a complex guy, as you might expect from the only man to become ultra-rich from investing alone. That’s why the book is long.

CHART: 27 Years Of Failed Wall Street Earnings ForecastsBI

This Is Not a Profile of Nassim TalebThe Chronicle

The muddled consequences of negativityalphaville / FT

Visual History Of The S&P 500ETFdb

Eight investment maximsGreenbackd
…to generate extraordinary returns investing in the unknown and unknowable.

Outrageous HSBC Settlement Proves the Drug War is a JokeRolling Stone
Despite the fact that HSBC admitted to laundering billions of dollars for Colombian and Mexican drug cartels (among others) and violating a host of important banking laws (from the Bank Secrecy Act to the Trading With the Enemy Act), Breuer and his Justice Department elected not to pursue criminal prosecutions of the bank, opting instead for a "record" financial settlement of $1.9 billion, which as one analyst noted is about five weeks of income for the bank.

In a World Full of Risk, Why Are Investors So Calm?Businessweek

Guest post - US Equities' Long Term Real ReturnsMacronomics

'The rating agencies have been the all-purpose bogeymen for the crisis'The Guardian

Ex-Moody's analyst: 'By 2006 it was toxic everywhere'The Guardian

The safe asset shortageFree exchange / The Economist

'The Physics of Wall Street': The Most Arrogant Book in the World?Minyanville

Why don’t bad ideas ever die?WP

Bleeding the Patient: A DramaKrugman / NYT

From High Frequency Trading To A Broken Market: A Primer In Two PartsZH

My Fine FifteenAbove the Market
The financial websites and blogs I used the most and found the most indispensable during 2012.

Experience, Rare Events and Risky ChoiceThe Psy-Fi Blog