What We're Reading (November 22, 2010)
Will the Junk Bond Market's Strength Wither? (Dealbook)
"The junk-bond market is enjoying a tremendous boom that promises to get even bigger. But some investors are wondering how much longer this bull market in higher-yield, higher-risk securities can last."
S&P 500 is Showing Signs of Weakening Breadth. (Bespoke)
"Even though the S&P 500 barely moved below overbought territory on this most recent pullback, the 10-day advance decline line has nearly moved to oversold levels. So while the move lower doesn't seem too big when just looking at the price chart of the index, its underlying breadth has been fairly weak."
The Dollar Cost Averaging Myth Won't Die. (Crossing Wall Street)
"Burton Malkiel says, "While no one can time the market, two timeless techniques can help. “Dollar-cost averaging,” putting the same amount of money into the market at regular intervals, implies investing some money when stocks are high, but also ensures some buying at market bottoms. More shares are bought when prices are low, thus lowering average costs." Eddy Elfenbein says this is not so."
Covered Writes an option for Good Yields. (A Dash of Insight)
"This article describes how a covered write strategy, selling calls agains stock positions, fits into a total return portfolio with an emphasis on retirement needs. It is the fourth installment of my "Yield Quest" series."
Investment Modeling - Focus on risks, not risk. (Aleph Blog)
"There are always a decent amount of lazy investors in the market. Smart investors can get better returns through paying careful attention to what seems to offer the best returns on a forward-looking basis."
"Why I was 100% Wrong on Gold" (The Business Insider)
"Of course, the recent slide notwithstanding, it's been a steady march higher for the yellow metal, and full-on gold bulls have been rewarded handsomely (Disclosure: I own some of the GLD ETF).
And to be fair, the gold bulls have had an excellent line of logic on their side: As the world's biggest economies get mired in deflation, the pressure increases on central banks to expand the money supply, with *spit* fiat currency in the world, the appeal of a 5000-year old form of "hard" money only grows."
Please tell us about what you're reading in the comments section below.
