1. Another semester is over. Blog stats just crossed 100,000 !!! Thank you all for visiting. I am glad people find my rambling, idiosyncratic posts and content useful. The site appears to be in need of some housekeeping / reorganization which I intend to do this summer. As always, your suggestions are appreciated.
2. Another frenzied bull run appears to be taking a pause this morning. The disconnect between equity market price fantasy and earnings reality is something I have alluded to for some time and my hangup with this disconnect has meant some money left on the table. As trader friends keep telling me, early adopters of momentum strategies are so far ahead by this point that a pullback of a few percent means little to them. And if the momentum continues to fade, there is always the exit button. Compare that reward with the intellectual satisfaction of being correct and contrarian, righteous and virtuous. I wonder how many in my profession are subject to such behavioral afflictions.
3. Links for your reading. From the Washington Post is this recent story on daytraders. Several students have approached me over the years about such “jobs” where you put in some money, and the “employer” adds some capital and “teaches” you how to “trade it.”
4. Sheila Baer is with Barney Frank in this piece on how the Dodd-Frank provision for 5% skin-in-the-mortgage-game is finding opposition.
5. Just as I applaud the Indian Supreme Court for favoring patient rights over patent rights (here), comes another story about fraud at large generics make Ranbaxy (here). I did a summer internship with them as a budding MBA decades ago. Sad.