Hedge funds fudge their quarter-end valuation numbers — WSJ
Maybe because they’ve been lagging the stock market since 2003 — WSJ
A year ago, I spoke to the University of Pennsylvania’s Michael Kearns about whether we might be able to do something to help prevent a much worse reprise of the May 2010 flash crash. The short answer is that no, we can’t — or won’t, in any case. But the longer answer is that there is something we could do, if we just had some will and a lot of money:
Matt Yglesias is, I think, very wrong about this:
The idea that a mass market of retail investors ineptly attempting to maintain a balanced diverse portfolio serves a useful role in steering capital to productive uses doesn’t pass the laugh test.
The two biggest expectations-defying retailers of the past decade were Sears Holdings and the Apple Store. Expectations could hardly have been higher when the former was created: it was one of those rare deals where the stock of the acquiring company went up on the news, and in an article headlined “Eddie’s Master Stroke“, Businessweek waxed positively rhapsodic about the prospects for the company becoming the next Berkshire Hathaway. Three years earlier, of course, it had published a column headlined “Sorry, Steve: Here’s Why Apple Stores Won’t Work“.
It’s that time of year when resolutions get made, and people have a bit of free time on their hands, and so thoughts turn to financial planning. This is a good thing. Top priority should always be liability management: make sure you’re not paying more interest than you need to, especially since interest rates are so low right now. If you’re carrying a substantial balance on your credit cards which isn’t likely to be paid off any time soon, look hard for some kind of loan which can pay that balance off.