As we come upon the close of the first quarter of 2013, most major equity indices around the globe are showing impressive gains, buoyed by continued monetary easing by central banks and hopeful signs of economic resurgence. While investors will likely look for confirmation in upcoming earnings reports, the recent disappointing earnings news and forecast from economic bellwether FedEx (FDX) should serve as a reminder that profit margins are near all-time highs and could represent a significant hurdle for stocks.
Below are some stories to add to your weekend reading list:
Model Behavior
- The Wisconsin Retirement System is a model for how public pensions should be run. (Institutional Investor)
Fundamental Matters
- Aswath Damodaran on the value and price gap facing investors in Apple (AAPL). (Musings on Markets)
- A practical reminder to wait for your pitch in today's market. (Research Affiliates)
- The overstated importance of quarterly estimates and avoiding the consensus-earnings trap. (McKinsey Quarterly)
Value Investing
- Warren Buffett and others pay tribute to the enduring legacy of Ben Graham. (Columbia Business School)
- Practical lessons and folksy charm make Buffett's latest letter to shareholders a must-read. (Berkshire Hathaway, PDF)
- Considering the worldly wisdom of Charlie Munger. (CFA Institute Magazine)
Activist Investing Takes Center Stage
- The Herbalife (HLF) battle is especially well-chronicled by William D. Cohan in "The Big Short War." (Vanity Fair)
- Regarding the exceptional influence of hedge fund manager David Einhorn. (Bloomberg Businessweek)
- Are activist investors a blessing or curse? (Market Integrity Insights)
Low Growth? Not So Fast
- Jeremy Grantham on the challenges of investing in a low-growth world and the outlook for the US economy. (Bloomberg)
- Chris Mayer is not buying Grantham’s natural resource depletion argument. (The Daily Reckoning)
Market Outlooks
- Howard Marks assesses the outlook for equities. (Oaktree Capital Management, PDF)
- According to Richard Bernstein, “It’s not the ’82 bull market, but it sure does look like it.” (Richard Bernstein Advisors, PDF)
- John Hussman dispels common market myths and repeats his call for stocks to fall. (Hussman Funds)
- Invoking Alan Greenspan, Bill Gross calls for “rational temperance.” (PIMCO)
Bad Actors
- The always entertaining Michael Lewis on the trouble with Wall Street. (The New Republic)
On “Investulating”
- Market pros on the distinction between investing and speculating. (Inside Investing)
Getting Technical
- A recent study suggests that technical analysis might improve investment returns. (Enterprising Investor)
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.
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