Portfolio Trumps Broad Market

The volatility in the market today is a tad higher than usual as stock options and futures expire. The ridiculousness of the Dow's price-weighted valuation shows as Caterpillar, whose capitalization is less than 10% of oil giant Exxon’s, another Dow component, is held solely responsible for the index's slip into red.

Anyway, the indices close flat as the broader market gives the bulls something to smile about with a slight move up in the home stretch. Despite the deluge of earnings, it’s really a lackluster week for Wall Street. The earnings rush continues next week.

Since its inception the folio this week trumps the market for the first time:

Index Return
Worst-known 0.75%
Dow 0.35%
S&P 0.22%
Nasdaq -0.64%

The market is theoretically the most diversified and neutral – in terms of volatility – so it is hard to beat. I know, I know. It’s only a week’s performance; nevertheless the worst-known manager is proud of this small achievement.