In Case You Missed Them - Some Links of Interest (7/25/09)

Posted by Bull Bear Trader | 7/25/2009 02:45:00 PM | | 0 comments »

Below are some links of interest (at least to me), just in case you missed them. A few have already been posted to Twitter.

  • Does the lag of the conventional P/E ratio make it useless as a value indicator? Would the P/E10 ratio, using the 10-year average of earnings, be better? Doug Short and others think so ( Using the indicator, the market is currently a little expensive, but a lower ratio may also play out, driven by either lower prices or higher earnings. Good stuff. Check out the article and the site.
  • Nice end of week market and chart commentary from Dave Fry, as usual (ETF Digest). Lots of apparent correlation in the charts. Reminds me of the dart throwing days of the late 1990s. Kind of scary actually. Yet at the same time, just a few stocks seem to be driving some of the indexes (The Big Picture). Should the correlation be telling us anything? (Daily Options Report)
  • What should growth look like after a great recession? (Calculated Risk)
  • Emerging market funds attracted $2.6 billion for the week ending July 22, increasing the total to $32 billion into such funds for the year (Bloomberg). The emerging market bull rallies have been impressive (Carpe Diem).
  • Some interesting survey results from professional investors (Value Expectations). More are in the inflation versus deflation camp going forward, with most expecting interest rates to reach 4.5%. Nearly all are also against another stimulus package, with a very strong majority also against cap and trade legislation.
  • More from Joseph Zaluzzi on High Frequency Trading - with a debating partner this time (Source: CNBC Video). Capitalism at its best or worst? Mathematics/Computer Science at its best or worst? Is it really just about adding liquidity and arriving at the correct price faster? Hum.....

  • As of Thursday, 85% of stocks in the S&P 500 were trading above their 50-day MA (Bespoke Investment Group). Still not quite as high as it was in April and May, but getting close.
  • Will banning "naked" credit default swaps just make it harder to manage risk? (Clusterstock)
  • What's on tap for next week? The Pragmatic Capitalist lays it out.
  • Below is a visualization of one trillion dollars, put together by the folks at (hat tip to Barry Ritholtz). As mentioned in the video, "trillion is the new billion."

  • Are CNBC's recent rants on bloggers good for short-term rating, but bad for long-term viewership? (Zero Hedge, Daily Options Report). Some wonder if they realize who their main viewers will be in 10 years.
  • While the market was up, there was not an accumulation day on Friday (The Financial Ninja).
  • No home equity? No problem. Now you can turn you car into an ATM (Clusterstock, Fund My Mutual Fund). Seriously.