Friday links: betting on human nature

Markets

• Urban Carmel, "In summary, the 5 largest stocks are big (but not unusually so) and outperforming most other stocks (which is how they came to be in the top 5). All of this is normal. Over time, stock indices have typically been driven higher by a small number of stocks. And over time, those leaders have continually change." (fat-pitch.blogspot.com)
• Ed Yardeni's indicators haven't rolled over yet. (blog.yardeni.com)
• The S&P 500 is NOT a momentum fund in drag. (theirrelevantinvestor.com)

Strategy

• Why you wouldn't have picked Berkshire Hathaway ($BRK.A) stock back in 1975. (morningstar.com)
• How a value investor thinks about the difference between an investment vs. speculation. (safalniveshak.com)
• Why rebalancing works in an investor's favor. (economist.com)
• Why price targets are stupid. (howardlindzon.com)

Support

• Stay up-to-date with all of our posts: sign-up for our daily e-mail. (abnormalreturns.com)
• Love Abnormal Returns? Then like (and follow) us on Facebook. (facebook.com)

Crypto

• The SEC has once again rejected a proposed Bitcoin ETF. (cnbc.com)

Twitter

• Another day, another social media disappointment. (cnbc.com)
• What is Twitter ($TWTR) has all the users it is going to get? (bloomberg.com)
• If you are on Twitter ($TWTR) its likely the case your tweets are a part of some academic research study. (fivethirtyeight.com)

Finance

• Wall Street is increasingly geared toward serving the interest of private equity. (economist.com)
• Why private equity is keen on the growing health care sector. (economist.com)

Funds

• How State Street ($STT) lost its lead in the ETF business. (wsj.com)
• The rise in passive investing is helping to put the squeeze on third party research firms. (blogs.cfainstitute.org)

Economy

• Q2 GDP rose at a robust 4.1% rate. (calculatedriskblog.com)
• Chemical activity was up in July pointing towards continued industrial production growth. (calculatedriskblog.com)
• Americans have been saving more than we thought. (ft.com)

Earlier on Abnormal Returns

• Podcast links: secrets and lies. (abnormalreturns.com)
• What you missed in our Thursday linkfest. (abnormalreturns.com)
• Startup links: massive value accretion. (abnormalreturns.com)
• The first law of finance is that there are no laws. (abnormalreturns.com)

Mixed media

• Want less biased decisions? Use an algorithm. (hbr.org)
• You can only know so much before acting. (seths.blog)
• We are all hostages to our biases. (newscientist.com)