9/20/18

Chicken Little Fails for the last time

Dow hits record, surpassing January High 

Chicken Little will never leave his wingman again

9/12/18

Financial Knowledge Quiz


Here is a quiz of your financial knowledge. The task is to recall the peak price (not including dividends) and date of some of the most important financial assets and indices. 

today 9/12/18all time highdate of all -time high
US Stocks - Dow Jones Industrials25,999
Non-US Stocks (EFA)$66.18
Emerging Market Stocks (EEM)$41.44
US Long-Term Treasuries (TLT)$118.94
Gold (per oz.)$1,207
Bitcoin$6,297
Oil (WTI)$69.25

Answer before looking below.

9/3/18

August 2018, Chicken Little Portfolio Performance

At 25,965, the Dow is approaching its all-time high of 26,616. It will be historic if the Dow hits a new all-time high, and equally historic if the Dow fails to hit new high. 

The US stock market is about to make history 

8/3/18

July 2018, Chicken Little Portfolio Performance

In July 2018, the Chicken Little Portfolio lost 0.65% while the Dow soared 4.80%. The U.S. stock market remains stuck in a range - The Dow has not exceeded the January high of 26,616 nor gone below the February low of 23,533. 

Bear market ahead? 


7/2/18

June 2018, Chicken Little Portfolio Performance


In June 2018, the Chicken Little Portfolio earned 0.73% while the Dow lost 0.44%. The global  market situation remains the same -- investors have made zero money this year, but the collapse has not yet arrived. 

The Bear is Hungry -- Food coming soon

6/19/18

How to Win a Bar Fight with the Stock Market


There are a surprising number of websites that will teach you how to win a bar fight. This post translates that 'wisdom' into dealing with the your investments in the stock market with links to previous Chicken Little posts about the stock market. 



6/6/18

May 2018, Chicken Little Portfolio Performance

"It's not the money I will miss, it is the things" 
-- Private Judy Benjamin 

The 'Wealth Effect' is the money people spend when they become wealthier, often because of rising stock & housing prices. Will people continue to spend if assets do not rally in 2018? 

2018 may not have a positive wealth effect

5/1/18

April 2018, Chicken Little Portfolio Performance

The coming great financial storm may be upon us. In the past, I have focused on the probability and characteristics of the coming Financial Depression (e.g., "there will be a massive, historic drop in price for all risk assets"). In this post, I focus on the process of the decline, and the barrier you will face in saving yourself and your family. 

The Great Financial Storm Looms

4/18/18

Men Can be Evil: Economists are often confused

Men fill the world’s prisons, commit most murders, and have started all major wars. In another example of scientists rediscovering ancient truths, a new study of mine documents the costs men impose on (an experimental) society. In the study, status-seeking men are willing to impose enormous costs on others to move up in the hierarchy. 



4/17/18

Initial Bear Market Raid Complete

Chicken Little began a modest bear market raid by shorting US stocks in February. That short position is now closed. The Chicken Little Portfolio made 0.25% on this raid. (6.25% short positions and a ~4% decline in US stocks = 0.25%). While this is a tiny gain, making money on the first short position is great, and works to train the mind to look for more opportunities. The Dow Jones Industrials sits at 24,786 - roughly halfway between the January 26, 2018 high  and the lows of February. Chicken Little anticipates more declines.


Bear Market raid creates taste from more honey

4/3/18

March 2018, Chicken Little Portfolio Performance

The US stock market has declined 10% since January 26, 2018. Chicken Little predicts further declines. 


A Long Way Down

3/22/18

Break the Buy the Dip Habit

'Buying the dip' - investing new money after stock market declines - has been profitable for almost a decade. However, Chicken Little believes that buying the current dip will be disastrous (see, Chicken Little sees death). Keeping our money safe, however, requires overcoming our own brains.


Don't Buy this Dip