Friday links: the price of risk

29May09

“Now that we are in a confirmed rally, things could get silly to the upside so if you are pigheaded about the world ending, best stand aside.”  (Howard Lindzon)

It’s hard to overrate the value of taking a hard look at investing assumptions. By continually putting an expected price on risk, we become better investors.”  (Capital Spectator)

How Harvard nearly blew itself up (financially).  No wonder universities are seeing their credit ratings reduced.  (Boston Magazine via Atlantic Business, WSJ)

How one investor is managing his portfolio.  (Dasan)

Taking a closer look at the “seasonal headwinds” the market sees from June-October.  (401kAlpha)

Remember when financial stocks used to move a lot?  (Clusterstock)

Preferred stocks are on a tear.  (Bespoke)

The case against Moody’s (MCO) rests on the theory that credit ratings are obsolete.  (greenfaucet, Free exchange)

“The price of crude oil once again seems to be defying the economic forces of gravity.”  (WashingtonPost also Green Sheet, 24/7 Wall St., FT Alphaville)

Oil is outperforming oil stocks in this rally.  (Bespoke)

Q&A with Roger Nusbaum on the role of commodities in a portfolio. (Hard Assets Investor)

Ford (F) got through the financial crisis intact.  Can it now succeed?  (24/7 Wall St.)

A new General Motors, still has an old UAW as a partner.  (Deal Journal)

GM will soon leave the Dow.  Who next for the Dow?  (Fundamental Insights)

The Treasury bubble has burst and is approaching fair value.  (WSJ, Barron’s, Clusterstock)

“I want to believe that the rapid reversal of Treasury yields is a benign, even positive, event. This is likely the Fed’s view; consequently, the Fed will hold steady on policy.”  But… (Economist’s View)

David Rosenberg thinks the Treasury market is oversold.  (Free exchange)

When short-term rates are close to zero yields further out on the Treasury curve don’t convey the same information that they do when short-term rates are well above zero…”  (The Stash)

Since the Great Depression we have had a long period of quiet in the banking sector.  What changed?  (Ezra Klein also Felix Salmon)

The banks and credit agencies aren’t getting along.  (Baseline Scenario)

“America does not formally need to default to penalise its creditors; it can simply let its currency decline.”  (Economist)

America has a knack for blowing bubbles.  What is the next bubble?  (finem respice)

On the growing gap between existing and new home sales.  (Calculated Risk)

Signs that the nation’s shelves are getting restocked.  (Floyd Norris, ValuePlays)

Just how good are the loans Chinese banks are now making?  (WSJ)

“An enormous number of families have become dynastically wealthy over the centuries; precious few have managed to remain so over many generations…”  (Felix Salmon)

Don’t worry about the lawyers and accountants.  They will get theirs in the big bankruptcy cases.  (Slate also footnoted)

Is the media shunning Jim Rogers?  (Clusterstock)

Microsoft (MSFT) vs. Google (GOOG).  Bing, a new search engine vs. Wave, a new e-mail platform.  (Silicon Alley Insider, Atlantic Business)

Podcast with Peter Lesson author of The Invisible Hook on the economics of pirates.(EconTalk)

Putting box office receipts into historical context.  (EconomPic Data)

Getting fat, 100-calorie snack packs at a time.  (Skeptical Hypochondriac)

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

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