Wednesday, May 04, 2005
Didn't get invited to the party
I didn't get an invitation to today's big stock market party. My portfolio managed only a $500 gain. For the week so far, I'm up $2500. Not bad, but if my money were in an index fund, I would have gained even more. It looks like the adjustments that I made to my portfolio last year have resulted in a portfolio that has a very low (and perhaps even negative) beta. I would say that for the past 3 months, my portfolio has been virtually uncorrelated with the market. On days when the market is up, that's a bad thing. On days when the market is down, that's a good thing. Luckily (for me), the market has been down more often than up this year, which helps explain at least in part my outperformance.