Hottest links for Wednesday 8th January, the late edition (see Tuesday’s edition of hottest links). Get our free daily newsletter (the updated version) and never miss a single linkfest. Also, now if you sign up you will get our new e-book on value investing.
Top stories for today are below. Today’s stories include discussions of Malcolm Gladwell’s new book, ETF stats for December, and six castles you can buy for less than an apartment in NYC.
Hottest Links: Stories
Value Investing
Investors Must Accept That Markets Are Unpredictable
Could the market drop the day after you make an investment? Yes, but it could rise, as well. While we professionals can tell you the factors that may cause the market to rise or fall, we can’t tell you if the market will rise or fall. [Charles Rotblut, The Wall Street Journal]
Introspection Can Improve Your Investing
The holiday season and the turn of the calendar year can create an opportunity for introspection as to how you invest. [A. Michael Lipper, Inside Investing]
Don’t Be a ‘Time Machine’ Investor
The discomfort arises because the “smart” in the term “smart beta” can be taken to imply investors will get superior returns. [Brendan Conway, Focus on Funds]
David (Active Management) vs. Goliath (Passive Indexes)
Malcolm Gladwell is a fantastic writer and his new book, David and Goliath, got us thinking about his current thesis: David as a poster child for underdogs is a mistake. Gladwell contends that David had significant advantages over Goliath. [Smead Capital Management]
Funds
REITs, Asset Allocation, & The Correlation Headwind
This is a byproduct of the performance divergence between the two asset classes of late. But unless you think that stocks are REITs are now destined to move in lockstep from now on, the diversification potential for the two asset classes is still intriguing. [The Capital Spectator]
Why Nearly 70 ETFs Died in ’13 Despite a Roaring Stock Market
ETFs sometimes are cast too narrowly, such as the two leveraged VelocityShares ETNs tied to copper prices that closed in January after 11 months. [Brendan Conway, Focus on Funds]
6 Castles That Cost Less Than An Apartment In NYC
With Russian, Chinese, and Argentinian (with a record low in the blue dollar today) money washing ashore (in USD or Bitcoin) under the Status of Liberty, the ‘prices’ of upscale apartments in New York City have simply exploded. [Tyler Durden, Zero Hedge]
ETF Stats for December 2013
Trading activity increased 12.6% in December to $1.24 trillion. Of that, SPDR S&P 500 ETF Trust (NYSEARCA:SPY) accounted for 32.6%. [Ron Rowland, Invest with an Edge]
| December 2013 Month End | ETFs | ETNs | Total |
|---|---|---|---|
| Currently Listed U.S. | 1,332 | 204 | 1,536 |
| Listed as of 12/31/2012 | 1,239 | 206 | 1,445 |
| New Introductions for Month | 10 | 1 | 11 |
| Delistings/Closures for Month | 2 | 4 | 6 |
| Net Change for Month | +8 | -3 | +5 |
| New Introductions 6 Months | 79 | 7 | 86 |
| New Introductions YTD | 143 | 15 | 158 |
| Delistings/Closures YTD | 50 | 17 | 67 |
| Net Change YTD | +93 | -2 | +91 |
| Actively-Managed Listings | 71 (+2) | n/a | 71 (+2) |
| Assets Under Mgmt ($ billion) | $1,674 | $23.2 | $1,697 |
| % Change in Assets for Month | +1.9% | +3.4% | +1.9% |
| Qty AUM > $10 Billion | 36 | 0 | 36 |
| Qty AUM > $1 Billion | 209 | 6 | 215 |
| Qty AUM > $100 Million | 656 | 32 | 688 |
| % with AUM > $100 Million | 49.3% | 15.7% | 44.8% |
| Monthly $ Volume ($ billion) | $1,202 | $35.4 | $1,237 |
| % Change in Monthly $ Volume | +12.0% | +37.2% | +12.6% |
| Avg Daily $ Volume > $1 Billion | 7 | 1 | 8 |
| Avg Daily $ Volume > $100 Million | 69 | 2 | 71 |
| Avg Daily $ Volume > $10 Million | 249 | 10 | 259 |
Bill Miller’s Legg Mason Opportunity Trust
Bill Miller’s Legg Mason Opportunity Trust returned a whopping 67% in 2013, reports The New York Times’ James Stewart. [Sam Ro, Business Insider]
How JPMorgan shorted Madoff
Hidden in the document detailing Tuesday’s settlement between the Department of Justice and JPMorgan Chase & Co. (NYSE:JPM) over Bernie Madoff’s Ponzi scheme was this nugget: JPMorgan was essentially shorting Madoff. [Stephen Gandel, Term Sheet]
Citi Considers Selling Private-Equity Stake to Comply With Volcker Rule
Citigroup Inc. (NYSE:C) is considering selling its $1 billion stake in a private-equity fund to comply with new federal rules, said a person familiar with the matter. [Shayndi Raice, MoneyBeat]
Misc
Taoist temples and local blindness
Bronte Capital’s office are in the tower above the Westfield Shopping Centre in Bondi Junction, Sydney, Australia. [John Hempton, Bronte Capital]
The Fed and QE – An almost impossible balancing act
A nice series of articles from Bloomberg news alerts us to the fact that the Fed is anything but united when it comes to QE. [Variant Perception]
Greenberg: Netflix Downgrade — Moment of Truth?
Whenever a bullish or bearish analyst veers from the pack, it’s noteworthy. With Netflix, Inc. (NASDAQ:NFLX), it was noteworthy when Janney’s longtime bear Tony Wible turned bullish just before the stock took off. [Herb Greenberg, Herb on TheStreet]
Hottest Links: Not The Onion
Pizza Delivery Man Caught Having Sex With His German Shepherd
A pizza delivery man in Florida was arrested after his roommate caught him, on tape, having sex with their shared German Shepherd. [NewsBreaker]
