Chicken Little Portfolio Performance September 2016

In September 2016, the Chicken Little Portfolio lost 0.63% while the Dow Jones Industrial Average lost 0.44%.

September 2016 performance

Sept 20162016 YTDSince Inception (3/31/2016)
Chicken Little-0.63%5.47%2.84%
Dow Jones Industrials-0.44%6.96%6.67%

Chicken Little Lost 0.63% in September because of a decline in the price of long-term US Treasury bonds. Judged by the small moves in many major asset markets, September was a second sleeper month in a row. 

AssetSymbolSept 2016YTD 2016
Dow Jones IndustrialsDIA-0.44%6.96%
Non-US StocksEFA1.34%2.70%
Emerging Market StocksEEM2.52%17.17%
US Long-Term Treasury BondsTLT-1.51%15.74%

Change in the Bond Market?

While the markets have been calm, there is a potential change in the interest rate environment. US interest rates remain above the lows set in May of 2016. Similarly, interest rates in Japan and some other important markets may have stopped going down. For more than 20 years, investors have lived in a world with declining interest rates. If rates have stopped going down, the investment world may be changing.

October 2016 portfolio positions

As of October 1, 2016 the Chicken Little Portfolio remains ready for a global, deflationary depression. Chicken Little is heavily invested in US Treasuries and cash. There was no substantial change in the Chicken Little Portfolio during September 2016. 

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