We're looking at a slightly higher open to the market this morning. That said, I want to discuss the portfolio's continued cyclical skew. We returned to negative territory for the year Monday, simultaneously giving up some ground to the S&P 500.
Despite my concerted efforts to diversify the portfolio, I've noticed that we continue to outperform the broader market averages on up days, and lose more than the indices when there's a decline.
Don't get me wrong -- on paper, this is still a great bunch of stocks. But days like Monday you really feel the absence of having a solid consumer growth play like Pepsi (PEP) or Kellogg (K) ; or one of the inexpensive financials like Bank of America (BAC) or Citigroup (C) , that offer buyback and dividend support
That's because we have stocks like Textron (TXT) that give back 4 hard-earned points for no good reason in particular. As much as I try to circle the wagons around my One-rated names, there's no fighting a move like that in the near term, trading restrictions or not.
Speaking of which, I remain interested in paring back, if not eliminating, my Microsoft (MSFT) and UnitedHealth Group (UNH) positions when my restrictions allow. In the meantime, you readers should know that the performance of the portfolio could continue to be volatile in the current environment, where every tic of the FOMC is being examined under a microscope.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long Textron, Microsoft and UnitedHealth Group.
Send email to james.cramer@thestreet.com.