Hot Links: Shock the Street

Stuff I’m Reading this Morning…

Bill Ackman’s surprise team-up with Valeant Pharmaceuticals to buy Allergan shocks Wall Street.  (WSJ)

How rising rates on US bonds could wreak havoc in the Chinese economy.  (Euromoney)

Dan Nathan’s look at the Apple trade setup into earnings.  (RiskReversal)

Hedge fund industry adds a net $26 billion of new cash in Q1 to a total of $2.7 trillion – a double since 2008.  (WSJ)

There’s a difference between smart beta and factor investing.  (ETF)

…Or how about we just call it enhanced indexing?  (AlephBlog)

At any given time, we face about a 12% probability of a lost decade for equities, historically speaking.  (AboveTheMarket)

A majority of investors have no business worrying about stock selection – especially because they’re so apt to be bearish on underperformers and bullish on yesterday’s winners.  (PensionPartners) and (RickFerri)

Why you need to ignore all market-timing opinions in the media, Exhibit A.  (MarketWatch)

On the importance of investing timeframes and focusing on the right reference point.  (WealthofCommonSense)

Here’s what you should know about Ford’s just-announced incoming CEO.  (CorpIntelligence)

Your Merrill broker really needs you buy higher margin products from him so he can make the “recognition club” or at least the “circle of champions.” Thank you for your cooperation.  (Reuters)

Massive sex abuse scandal rocks Hollywood as accusations fly all over town.  (Buzzfeed)

How the Internet is killing religion in the United States.  (TechnologyReview)

Felix Salmon leaving Reuters for something Internetty.  (NYT)

What we can learn about investing from one of the world’s greatest sushi chef.  (MarketFolly)

My book, Backstage Wall Street, available at Amazon

Read this next.