Monday links: hidden assumptions

10Mar08

TIPS are garnering all manner of attention. (IDDmagazine.com via TheStreet.com)

“The ABX has some major flaws.” (Alea, Economist.com)

All accounting regimes are flawed, but “fair-value accounting is still the best way to value a business.” (Economist.com)

“Putting together an $18.8 billion IPO is a huge undertaking, especially at a time of market turmoil and economic uncertainty.” (BusinessWeek.com)

There are few signs of a credit crunch in Asia. (FT Alphaville)

Large economic shocks occur so infrequently that bankers often underestimate shock probabilities.” (Alea)

“(W)e might now have reached the limit of fixed-income asset classes which can suffer an exodus of investors who thought they were taking no credit risk and no liquidity risk.” (Market Movers)

Should we rely on P/E ratios at this point in the market cycle? (WSJ.com)

Equities are getting relatively more attractive. (Capital Spectator)

The market is “firmly” in oversold territory. (IndexIndicators.com)

11 reasons to short Berkshire Hathaway (BRKa). (TheStreet.com)

Hedge funds are depending less on investment banks and independent researchers and relying more on their in-house version.” (InstitutionalInvestor.com)

Market efficiency requires some active investment. (Interfluidity, Market Movers)

The proportion of “skilled” mutual funds has declined over time. (CXO Advisory Group)

Hidden assumptions should give rise to “health warnings” on quantitative models.” (All About Alpha, NakedShorts)

“In sum, the markets are a mess, policymakers don’t agree on what to do, and there may be nothing they can do except make matters worse.” (naked capitalism)

The natural rate of unemployment is on the rise. (Economist’s View)

(S)ocial learning appears to be an important determinant of sales in the movie industry…” (Undercover Economist)

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