Chicken Little portfolio performance February 2016

February 2016 monthly update for the Chicken Little Portfolio.
In February 2016, the Chicken Little Portfolio gained 1.03% while the Dow Jones Industrial Average gained 0.69%.

You can view the portfolio performance in real time by clicking here.

Chicken Little made two changes in the month of February. First, the long-standing short gold position was closed, and, second, Chicken little added to the 30-year Treasury position. You can read the logic covering the gold short here, and here on buying more low yielding Treasury bonds. The portfolio remains heavily invested in US Treasuries, and modestly short US and international stocks.

A Bit of the Sky has fallen in the start of 2016

February 2016 performance

Feb 20162016 YTD
Chicken Little1.03%3.30%
Dow Jones Industrials0.69%-4.79%

The Chicken Little Portfolio gained 1.03% in February. Chicken Little benefited from the increase in prices of Treasury bonds. The big winner in February was gold, which rose more than 10% in the month. Chicken Little lost a small amount on the gold short (and was lucky to escape the position part way through the month).

The first two months of 2016 saw stocks all over the world fall between 5 and 10%. Meanwhile, the safety plays of gold and Treasuries have done well. The sky has fallen a bit

AssetSymbolFeb 2016YTD 2016
Dow Jones IndustrialsDIA0.69%-4.79%
Non-US StocksEFA-3.33%-8.67%
Emerging Market StocksEEM-0.85%-5.81%
US Long-Term BondsTLT2.89%8.62%
March 2016 portfolio positions

As of March 1st, the Chicken Little Portfolio remains ready for a global, deflationary depression. Chicken Little is heavily invested in US Treasuries, and modestly short US and international stocks. 

The portfolio is even more defensively positioned than it was on February 1st. This is because the portfolio covered an approximately 4% short position in gold and invested 8.75% more in Long term treasury bonds. Taken together this represents a combined move of more than 12% into the safety assets. 

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