Thursday links: diversification definition

21May09

For many investors their definition of diversification is changing.  (NYTimes, Bull Bear Trader)

Do you believe the US Dollar is going to tank?  Think international equities.  (Barron’s, BusinessWeek)

Muni bonds are back to pre-crisis levels.  (TraderFeed)

“Wall Street will market the VIX as bullish no matter what it does.”  (Daily Options Report also Trader’s Narrative, Freakonomics)

The VIX:VXV ratio is flashing a warning sign for the stock market.  (VIX and More)

130/30 strategies are in the dog house.  (All About Alpha)

“The creation of risk capital, of which I.P.O. demand is a leading indicator, is crucial to getting the economy back on its feet.”  (Breakingviews)

Are activist investors to blame for horrible corporate balance sheets?  (Clusterstock)

Is the Required Yield Theory better than the Fed Model?  (CXO Advisory Group)

The UK’s AAA-rating is at risk.  (Bloomberg, MarketBeat, EconomPic Data, Zero Hedge)

In for a dime, in for a dollar.  “The GMAC funding is an illustration of how rapidly the government effort to rescue the U.S. auto industry is escalating in cost and scope.”  (WSJ)

The subprime mortgage issue is largely past, here comes the Option ARM and Alt-A mess.  (Clusterstock)

California is “broken” due in large part to its inability to make “tough necessary choices.”  (Deal Journal)

Let the PBGC bailout talk commence.  (Calculated Risk)

“..the decline so far in this recession is more than the maximum falls combined in the two previous receptions, in the early 1990s and then in 2001.”   (Floyd Norris)

How much should we read into a big jump in the Philly Fed’s index of future economic activity?  (Carpe Diem also Big Picture)

The basic story of China’s foreign portfolio is simple: it is trying to reduce the amount of (credit) risk in its fixed income portfolio while simultaneously taking on more commodity risk.”  (Brad Setser)

America has a long tradition of central bank antagonism.  (FT Alphaville)

Coal is here to stay for awhile, whether we like it or not.  (Gregor.us)

Tough times for the country club set.  (WashingtonPost)

Book reviews of “Street Fighters” and “Quantitative Strategies for Achieving Alpha”  (Dash of Insight, Aleph Blog)

Which Buffett biography should you read?  (Manual of Ideas)

“Could porn beat out a heavily-advertised drug for dominance in the testosterone boosting market?”  (Skeptical Hypochondriac)

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