Several worthwhile articles have come across my desk this week. Here are a few:
- The 12 cognitive biases that prevent you from being rational
- 4th quarter earnings will be an unmitigated disaster
- Unlucky ’13 beckons for gold miners
- The top 10 reasons to be bullish in 2013 (yes sarcasm)
- Desperate for yield investors (and their advisers) are putting capital in harm’s way by over-paying for dividend-paying equities and many bonds. Stocks have less principle security than junk bonds, and junk bonds–the riskiest credit paper available-now have an average yield of less than 6%, the lowest payment for the capital risk ever in market history. This gives a sense of the madness of income-starved crowds today. See Corporate Bonds boom on search for yield
- Howard Marks memo to clients 2013 explaining the human behavior that drives market cycles: “The wise man invested aggressively in late 2008 and early 2009. I believe only the fool is doing so now”. See the whole memo here.