The Dollar, Stock Prices and Currency Manipulation (A Dash of Insight)–Jeff Miller breaks down the historical relationship between the Dollar and equity performance. In doing so, he debunks the notion that today’s negative correlation between the two is an enduring and lasting relationship. Be sure to accept Jeff Miller’s challenge and read his ensuing answer.
Paul Tudor Jones and Episodic Pivots (Stockbee)–With earnings season in full force and stocks making decisive moves in both directions, Stockbee offers an informative analysis and interpretation of the episodic pivot–a defining moment in the lifetime of a stock. Such events are crucial catalysts in the investment thesis of noted investor Paul Tudor Jones.
QE 2 Drowning TIPS Yields Below Water (Investing Caffeine)–Wade Slome breaks down the popular misconception that investors are “paying the government” in order to own inflation protection. This is a great refutation of an oft-mistaken interpretation of the TIPS yield having gone negative. Contrary to conventional wisdom, TIPS guarantee that even when the yield turns negative, their bond investors receive 100% return on capital. Read Wade’s analysis to learn more.
Why Netflix Won (Pakman’s Blog: Disruption)–David Pakman takes a look at the history of Netflix (NASDAQ: NFLX) and how they used intellectual property rights in order to overcome resistance from the movie production studios. This piece offers great insight into the managerial vision and prowess that is the driving force behind Netflix corporate and stock market success.
Nicholas Carr’s The Shallows: What the Internet Is Doing To Our Brains (The Millions)–This is both a review of Nicholas Carr’s new book and a look at how 24/7 access to information on the Internet has changed the way we humans learn, absorb and process information. In plugging into the digital age we have retrained the pathways in our brain to operate in a way unique in the history of humanity.
What’s Really Behind that $1.3 Trillion Deficit? (Reuters)–Was it spending that got us in trouble or was it the collapse in tax receipts that resulted from the Great Recession? In a guest post at Reuters, Justin Fox does the math in order to determine once and for all what’s really behind the growing US fiscal deficit.
The Truth: Why iPhone Users Will Ditch AT&T and Run To Verizon (TechCrunch)–This article discusses the back-end network infrastructure that supports 3G phones on both AT&T and Verizon and concludes that the superior network structure of Verizon. Steve Cheney concludes that the fundamental differences between the two networks will incentivize a mass exodus of iPhone users from AT&T to Verizon when the time comes.
15 Inviolable Rules for Dealing with Wall Street (The Big Picture)–Barry Ritholtz offers a slate of rules to live by for anyone dealing with a Wall Street person or institution. These rules apply as much to the most experienced Wall Street veteran as they do to a novice amateur.
Joseph Stiglitz: The New World Economy (New Deal 2.0)–In this interview with Joseph Stiglitz, he discusses the US as the world’s “consumer of last resort” and the state of global trade imbalances and their impact on global economics. He is one of the foremost thinkers in global economics and his thoughts on their own demand attention.
Disclosure: Long NFLX and VZ