Roger Nusbaum submits: If your portfolio has any element of active management (your active management or management you pay for) it will tilt toward certain themes. A day like Monday tilts strongly to most of the themes I am overweight. Foreign stocks did well, energy did well, materials did well and domestic lagged.
On Monday the equity portion of client portfolios generally did well. In addition to the above, Statoil (NYSE:STO) was up 5% on the oil news and economic data out of Norway.
Days where the dollar is strong and big US stocks do very well are days that I know our portfolio will lag. One part of the emotion that sometimes goes with owning stocks is a negative reaction on days that you lag. It is that reaction that might cause unnecessary trades to be placed.
A diversified portfolio can not beat the market every day. If the goal is to beat the market over longer periods of time and your themes lag more often than not, that is a signal that some of your ideas are wrong.
Lately, luckily, the days I have lagged have not been more than the days I have lead -- so for now no big changes. This is the type of thing to keep tabs on, again if beating the market is your goal.