Notes from Yesterday

1. The Broad Market Portfolio made 30 basis points yesterday, amid a rally in some cyclicals. Names that worked for me included Tsakos Energy Navigation [TNP], Royal Bank of Scotland [RBSPF], and Lafarge SA [LR]. Industrias Bachoco SA lagged, but after yesterday’s great performance, who can complain? Energy names did okay, but less well than the commodity; this may be part of a correction for the recent energy equity outperformance.

2. I think Cramer has it wrong on railroad mergers. The great demand in rail is for traffic to go East-West, not North-South. If the antitrust authorities allowed it, it would make sense for Union Pacific and Norfolk Southern to merge, as well as Burlington Northern and CSX. That would offer far more value than what he proposes.

long RBSPF ABN BCS IBA TNP LR