US investors are celebrating Thanksgiving this week, and the soaring stock market continues to serve nothing but humble pie to the thinning ranks of market bears. Hedge fund manager Hugh Hendry was the latest high profile investor to capitulate, recently advising, “I may be providing a public utility here, as the last bear to capitulate. You are well within your rights to say ‘sell.'" Indeed, we may see cautious investors look to secure some of their gains in the closing weeks of the year, but the trend for now remains positive.
Here are some worthwhile reads (and videos) you may have missed in recent weeks.
Strategic Thinking
- Richard Chilton’s value investor's guide to finding quality business models. (University of Virginia via YouTube)
- Howard Marks believes equities are under-owned and unloved. (Advisor Perspectives, PDF)
- Wharton’s Jeremy Siegel says stocks are the most stable asset class in the long run. (Enterprising Investor)
- Jason Trennert on the T.I.N.A. factor. (University of Virginia via YouTube)
- Russ Koesterich, CFA, chief investment strategist for BlackRock, wonders if investors have become too complacent. (BlackRock)
- Morningstar’s Samuel Lee on why most back-tested performance histories are bunk and how you can identify the ones that probably aren't. (Morningstar)
- "Inside the Mind of Marc Andreessen" (Fortune)
What Drives Stocks, Profits and Value
- "Yen and Yang: The Response of the Nikkei to the Yen" (Liberty Street Economics)
- The corporate profit equation derived, explained, and tested. (Philosophical Economics)
- Fama and Shiller: "Two Nobel Laureates . . . Two Tales of Value" (Research Affiliates)
- Stanley Druckenmiller thinks cash flow is the ultimate company truth teller. (Bloomberg)
- Insights from clairvoyant discount rates. (The Journal of Portfolio Management)
- Aswath Damodaran on why you should welcome uncertainty. (Musings on Markets)
- Vitaliy Katsenelson on the blessing of a declining stock price. (Institutional Investor)
Behavioral Matters
- "The Overselling of Behavioral Economics" (Reuters)
- Nick Bilton on technology stocks: If it looks like a bubble and floats like a bubble . . . (The New York Times)
Emerging Markets
- Why are emerging markets slumping so badly? (CFA Institute Magazine, PDF)
- "Will Emerging Stocks Get a Developed-World Lift in 2014?" (Context)
- Africa’s Internet opportunity could be transformative. (McKinsey & Co.)
Buffett Buys Exxon Mobil
- The Brooklyn Investor considers Warren Buffett's newest holding, Exxon Mobil. (The Brooklyn Investor)
- Barry Ritholtz reminds us of Buffett's previous Exxon bungle. (Bloomberg)
Tesla Motors
- Elon Musk on the mission of Tesla. (Tesla Motors Blog)
- The shared genius of Elon Musk and Steve Jobs. (Fortune)
Big Data
- James Surowiecki says the value that the digital economy is creating is real, but so is the havoc. (The New Yorker)
- Twitter and the digital democratization of equity analysis. (Institutional 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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