Assorted Links

1. Fed Chairman Bernanke gave his testimony to the US Congress. WSJ Blog has a series of postings on the same, try and read all the posts(in particular this and this). Excellent work.

2. WSJ Blog points out to an article that says record rise in Dow Jones index is not what is made out to be. Infact the stocks  “have only marginally outperformed cash sitting in a bureau drawer.”

3. How and why to invest in commodities via Finance Professor. It also points out to this paper on Behavior economics in which e-bay bidders end up with winners’ curse.

4. Free Exchange has another good post on Behavior Economics. It talks about the endowment effect.

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