A reminder of just how crazy the last nine months have been:  the S&P 500 is up 62%.  (Bespoke)

Trying to explain what happens in the markets on a daily basis is a mug’s game.  (Mean Street)

Timothy Middleton, “Gold is not an investment. It pays no dividend and actually costs quite a lot to store. Over long periods it maintains value, but never increases it.”  (Investor’s Eye)

Do-overs aren’t just for kids these days. The market rally in 2009 gives investors an opportunity to fix some mistakes.  (Abnormal Returns)

Relative value bond arbitrage hedge funds see more opportunities as competitors leave the field.  (WSJ)

A bet against riskier sovereign credits is finally paying off for hedge funds.  (WSJ)

For entertainment purposes only: predictions for the coming year.  (James Altucher, Jon Markman, Ron Coby, Bespoke)

Bill Luby, “In short, it means that even as volatility has flattened out, market expectations of future volatility have continued to decline.”  (VIX and More)

Deviations from put-call parity matter more for individual stocks than indices.  (Daily Options Report)

Todd Harrison, “Opportunity cost is the other side of discipline; that doesn’t sugarcoat the ‘miss,’ but if I’ve learned anything over the course of my career, it’s that opportunity cost is a lot easier to make up for than losses.”  (Minyanville)

This year some short-term traders have let their long term view color their trading.  (TraderFeed)

Is the link between testosterone levels and aggressive trading overstated?  (naked capitalism)

The ultimate guide to becoming a quant.  (Simoleon Sense)

Is the gaming industry subsidizing the development in high frequency trading?  (FT Alphaville)

Actively managed ETFs are going mainstream as T. Rowe Price (TROW) enters the fray.  (WSJ also IndexUniverse)

How one critic of exchange-traded notes or ETNs came around.  (DailyFinance)

Michael Mauboussin on the importance of checking source data. (Legg Mason)

How much should we make of a turn down in the rate of change in leading economic indicators?  (The Pragmatic Capitalist)

More reactions to the UK bonus tax.  (WSJ, Clusterstock, Dealbreaker, Financial Crookery, Atlantic Business)

Goldman Sachs (GS) executives to receive no cash bonuses in ’09.  (Dealbreaker, Clusterstock, FT Alphaville)

35% of the US banking system is too big to fail.  (Felix Salmon also Economix)

A TARP-free Bank of America (BAC) is still too big to fail.  (Clusterstock)

Citigroup (C) wants to pay back the TARP.  Will the Feds let it?  (DealBook)

Ginnie Mae has ignored “red flags” with certain home lenders.  (WashingtonPost)

Ironically home owners turned renters are providing a boost to consumer spending.  (Calculated Risk)

Is there a financial crisis in China’s future?  (FT Alphaville)

What does the “dumbing down of the news” mean for investors?  (A Dash of Insight)

On a bias towards action.  (A VC, kottke)

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