The broad market portfolio did well yesterday. A leading reason for that was the rumors regarding Dow Chemical being acquired by private equity. I don’t care about private equity, Dow Chemical is cheap; I’ll own it anyway. Also adding to the party was YRC Worldwide. In an economy as strong as this one, trucking should be strong.
Away from that, for those with subscriptions to RealMoney.com, I had an article published there that explained how to size portfolio positions. This article was inspired by Rob Pollock, the CEO of Assurant, who encouraged me to read “Fortune’s Formula,” which is a popularization of the Kelly Criterion.
Full Disclosure: long DOW YRCW AIZ