Weekend Reading: Bulls, Bears, and High-Frequency Foul-Ups
Global equity markets, buoyed in large measure by expectations of continued central bank accommodation, have continued their advance in the second half of 2012, with markets in Japan and the most financially stressed eurozone countries notable exceptions. Economic news, however, remains lackluster, prompting caution among risk-averse investors.
Here are some compelling articles you may have missed:
Growth and Value Investing
- While growth investing under performs value investing, especially over long time periods, it is also true that there are periods in which growth investing dominates. (Aswath Damodaran)
- An excerpt from John Bogle’s Clash of the Cultures: Investment vs. Speculation. (Institutional Investor)
- A profile on Seth Klarman, the “Oracle of Boston.” (The Economist)
- According to Howard Marks, “Mistakes are all that superior investing is about.” (Oaktree Capital, PDF)
Algos Gone Wild
- How Wall Street got addicted to light-speed trading. (Wired)
- Why high-frequency trading doesn’t compute. (Barron’s)
- The latest high-frequency trading foul-up prompts calls for more safeguards. (The Economist)
- A recent poll shows support for tighter regulation of high-frequency trading. (Enterprising Investor)
Strategists Weighing In
- “The cult of equity is dying,” writes William H. Gross. (PIMCO)
- Reports of the death of equities have been greatly exaggerated, according to Ben Inker. (GMO White Paper, PDF)
- “An indicator pointing to equity armageddon can be a sign of wonderful things to come,” writes Lisa Pollack. (FT Alphaville)
- Is buy-and-hold dead? (Richard Bernstein Advisors)
- Seth J. Masters makes a fundamental case for the 20,000 Dow. (Context)
Cool Reception for Manchester United’s IPO
- MANU shares were priced below the price range that underwriting banks had initially set. (Financial Times)
- Publicly traded professional sports teams rarely outperform the market. (Forbes)
- Manchester United listed more than 50 risk factors on its Form F-1 registration statement. (Enterprising Investor)
On What Ails the Market
- Five reasons we hate the stock market. (The Reformed Broker)
- There is no single answer to explain why America has fallen out of love with equities. (The Big Picture)
For more news and trends, visit the Equity Investments Community of Practice.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.
