Sunday links: cash flows talk

05Apr09

Currently, 75% of the stocks in the S&P 500 are trading above their 50-day moving averages.  While this is a strong breadth measure, it has also been a level that has been met with selling pressure in the past.”  (Bespoke)

“The basic math shows that the vast majority of up AND down days occur when the market has already been declining.”  (World Beta)

Cash flows talk, and estimates of future free cash flows drive stock prices.  Accounting rules do not affect free cash flows, and the best accounting systems try to make earnings approximate free cash flows.”  (Aleph Blog)

“Lately, I am hearing the term ‘Generational Bottom’ which is as dumb a term as ‘Bubble’.”  (Howard Lindzon)

Dow Jones should have just left the DJIA alone.  (Clusterstock)

Stable value funds are neither stable nor a value.  Discuss.  (Barrons.com)

Is “crowdsourcing” the future of credit rating?  (Fast Company via New Rules of Investing)

The role our DNA plays in our investment success.  (WSJ.com)

“Maybe the hedgies are finally realizing that the only thing worse than too much regulation is too little.”  (Felix Salmon)

Investment bankers are fleeing to the relative safety of academia.  (IDD.com via Infectious Greed)

Goldman Sachs (GS) is back.  No surprise given all the help it has received.  (Clusterstock)

Why are bank creditors escaping the pain of the current crisis?  (NYTimes.com, Baseline Scenario, Big Picture)

How much should we read into Larry Summers’ prior hedge fund employment (and compensation)?  (WSJ.com, Big Picture, Atlantic Business)

Tim Geithner dismisses the idea that he is manipulated by Wall Street…But that doesn’t mean the kings of finance aren’t influencing Geithner now”  (Newsweek.com)

Given where one bank is buying commercial loans, the PPIP is unlikely to get many takers.  (Zero Hedge also Felix Salmon)

Are the announced policies of “quantitative easing” and a future reduction of the size of the Fed’s balance sheet incompatible?  (Calculated Risk)

“Financial economics holds that creating more derivatives is ever and always better, but my instinct, per Keynes, is that there is a level beyond which more is in fact sub optimal.”  (naked capitalism)

Don’t expect much of a jobs bounce back when this recession is over.  (Deal Journal)

Pres. Obama impressed on the nation’s biggest bankers that “My administration is the only thing between you and the pitchforks.”  (Politico.com)

Has America’s pro-housing mentality changed forever?  (The Big Money)

How the Obama adminstration plans to use the techniques of behavioral economics to achieve policy goals.  (Time.com)

The current economic/credit crisis is tailor made for the back-and-forth of the econoblogosphere.  (Dealscape)

Newspapers have a bigger problem than their dependence on paper.  (A VC)

RIP, Greg Newton of NakedShorts fame.  (ETF Digest via StockJockey)

A contrary take on the value of URL shorteners.  (kottke.org)

It looks like we have a winner of the inaugural Abnormal Options Bracket Challenge.  (Daily Options Report)

Opening Day is here, which means it is time for a review of the “science of baseball.”  (Scientific American)

Curious what other bloggers are saying about Abnormal Returns? So are we. Feel free to check out a compilation of reviews.

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