Friday links: deleveraging is painful

03Oct08

Hedge funds have turned on their own.  “Hedge funds are embracing trading strategies designed to profit from the unwinding of large positions by their competitors, market participants say.”  (FT.com)

Hedge fund of funds are next up to take a hit as redemptions roll in.  (WSJ.com)

Hedge funds will survive so long as people believe there is a chance to beat the market.  (All About Alpha also ClusterStock.com)

“Turns out hedge funds will not have to publicly disclose their secret strategies after all, at least not any time soon.”  (DealBook)

Why investment banks overleveraged themselves in recent years.  (Curious Capitalist)

Wells-Wachovia.  Warren Buffett is happy, Citigroup (C) not so much.  (Market Movers, DealBook, Curious Capitalist, MarketBeat)

Is Silicon Valley the next domino to fall in the credit crisis?  (NYTimes.com)

The credit crisis has spread to the muni markets.  (Real Time Economics)

Credit default swaps are now a factor in the muni markets.  (NYTimes.com)

“We have a variety of factors converging to cause municipal bonds to perform extremely poorly.”   (Accrued Interest)

The money markets remained locked up.  (MarketBeat, naked capitalism)

“Will the bailout bill help bring liquidity back to the money markets in general?”  (Market Movers)

“So it is safe to say that, until the money markets behave more normally, the financial crisis will not be over. And until the financial crisis is over, the global economy may not recover.”  (Economist.com)

“The consensus among economists is now clear, the best strategy for dealing with the financial crisis is to recapitalize the banks that need recapitalization.”  (Marginal Revolution)

The 1872 banking crisis is the more apt analogy this time around.  (Infectious Greed)

“Europe has “more fleas than expected” vs. the United States. Sadly, that is what this whole mess boils down to. For the intermediate future, this is very dollar supportive.”  (Mish)

“Worried savers may still find that they still sleep a little easier with dollars under the mattress, rather than euros.”  (Economist.com)

Is the stock market still overvalued?  (BusinessWeek.com)

Deleveraging is painful.”  (Aleph Blog)

“For the first time in our experience, bad as things are on Wall Street, they’re just as bad on Main Street.”  (Jeff Matthews)

The ISM index indicates a recession.  (macroblog)

“The job market began to deteriorate even before the financial crisis reached a more serious stage two weeks ago.”  (Economix also Free exchange, Odd Numbers)

Position sizing is a psychological strategy as well as a strategy for risk management.”  (TraderFeed)

“In other words, the martingale strategy doesn’t eliminate risk—it just takes your risk and squeezes it all into one improbable but hideous scenario.”  (Slate.com)

The rumor mill moves Apple (AAPL) stock.  (MarketBeat, DealBreaker.com, Daily Options Report)

Whitney Tilson on finding investment opportunities.  (Tilson Funds via Kirk Report)

Is it time to diversify into alpacas and comic books?  (WSJ.com)

America needs a tough-minded turnaround plan.  (A VC)

Have we missed an interesting post in the investment blogosphere? If so, feel free to drop Abnormal Returns a line.

Advertisements



%d bloggers like this: