Don't Make Poison Pills More Deadly - NYTimes.com


Don't Make Poison Pills More Deadly - NYTimes.com:

"Poison pills were developed in the 1980s to enable insiders to block a hostile acquisition. Over time, however — and without sufficient attention by investors and public officials — companies have started to use poison pills to prevent acquisitions of stakes that fall substantially short of a controlling block.

Indeed, among the 637 companies

Sucker Alert? Insider Selling Surges After Dow 14,000 - Yahoo Finance


Sucker Alert? Insider Selling Surges After Dow 14,000 - Yahoo Finance:



"Insiders are waving the cautionary flag in an increasingly aggressive manner."

There have been more than nine insider sales for every one buy over the past week among NYSE stocks, according to Vickers. The last time executives sold their company's stock this aggressively was in early 2012, just before the S&P 500 (^GSPC)

The Honest Truth About Dishonesty by Dan Ariely


RSA and Ariely together?  YES! 






Nova's Mind over Money


Interesting look at behavioral finance from PBS' Nova:


Good stuff!

 

U.S. Accuses S.&P. of Fraud in Suit on Loan Bundles - NYTimes.com


This took longer than expected.

U.S. Accuses S.&P. of Fraud in Suit on Loan Bundles - NYTimes.com:


"The Justice Department filed civil fraud charges late on Monday against the nation’s largest credit-ratings agency, Standard & Poor’s, accusing the firm of inflating the ratings of mortgage investments

From September 2004 through October 2007, S.&P. “knowingly and with the intent to defraud,

aiCIO - A Neurology Lesson for Money Managers


Chief Investment Officer-CIO - A Neurology Lesson for Money Managers:

Nice short list (8 points) on how neuroeconomics effects money managers from Paul Zak.


"The crossover applications between neurology and economics don’t end there. In fact, an entire discipline has sprung up in their midst: neuroeconomics. Two leaders in this field have teamed up and crafted a list of the eight crucial

Why You Shouldn't Think Of The S&P 500 As A Diversified Basket Of 500 Companies - Seeking Alpha


Why You Shouldn't Think Of The S&P 500 As A Diversified Basket Of 500 Companies - Seeking Alpha:
The S&P, like most indexes, is a market-weighted index.  So the larger the stock, the more the influence.  This is demonstrated in this article from Seeking Alpha:

Two look-ins:

"...the top five holdings of the Vanguard S&P 500 ETF (VOO). They are Apple (AAPL), Exxon (XOM), General Electric (GE),

Hedge funds disappoint -- again - CBS News




Logo of CBS News (Photo credit: Wikipedia)

Hedge funds disappoint -- again - CBS News:

While this says nothing about the hedge aspects (may be a good low correlation investment), it does suggest that at Hedge funds are not the be all and end all that some suggest.


"Over the past five years, the S&P 500 returned 1.7 percent per year, producing a cumulative return of 8.6 percent, while the

Which Volatility Hedged ETF Should You Consider? - Zacks.com


Which Volatility Hedged ETF Should You Consider? - Zacks.com

A must for SIMM class where we just mentioned this in class:


"The tail risk hedge takes care of extreme market volatility which can potentially result in a crash. Therefore these events are considered to be outliers which normally do not fall within three standard deviations of the average of the implied volatility.

The

Are women better investors?


Female hedge fund managers outperformed male managers in 2012

"Meredith Jones, director at Rothstein Kass and the author of the
report, believes there are two primary factors at play in the
exceptional performance of women in alternative investments.

Women tend to be more risk-averse than men. “Women may be better
equipped to position a portfolio to handle market volatility which we

Before Facebook Deal, Instagram's Talks With Twitter - NYTimes.com

Before Facebook Deal, Instagram's Talks With Twitter - NYTimes.com:

This one will be talked about for years:

"Facebook’s deal to buy Instagram for $1 billion stunned Wall Street and Silicon Valley when it was announced in April. But executives at Twitter had an additional reason to be surprised. Instagram’s founders “held several meetings as late as March with top Twitter executives,” The New

Irving Fisher, the First Celebrity Finance Professor - Bloomberg

Irving Fisher, the First Celebrity Finance Professor - Bloomberg:

A history lesson on the man behind the "Fisher effect"

"Fisher developed revolutionary insights into financial theory that are still invoked today. He explained that the market interest rate coincides with the human tendency to discount an uncertain future when compared with the more pressing present. He argued that we distribute

Take the money: Why we make better financial decisions for strangers than family


Take the money: Why we make better financial decisions for strangers than family

This
one should not really surprise anyone and is essentially the logic
behind my recent test question of "what is the role of a financial
planner in the face of investors prone to behavioral biases".


"They
found participants were more likely to select a smaller immediate
reward than delay for a larger