On August 11, 2016, Chicken Little broke up with Treasury bonds, and began looking for love elsewhere. Consistent with Chicken Little "Investment Rules," this post describes Chicken little's first date with buying US Stocks.
Given that Chicken Little fears a deflationary depression, buying US stocks has been emotionally challenging. some details follow.
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Chicken Little has bought US stocks |
Keynesian Dating
John Maynard Keynes famously replied to criticism of his changing views by saying, "When the facts change, I change my mind, what do you do?"
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Keynes was a great investor |
Chicken Little was 100% invested in stocks from 1981 through 1999. Owning stocks is much easier psychologically than being negative. Six months ago, I laid out the Chicken Little criteria for becoming bullish.
What would it take for Chicken Little to become beefy?
1. New high in the Dow Jones Industrial Average
2. Rising US Corporate profits
3. Real Corporate Profits, not fake
4. Destruction of Financial Safe Havens
5. Global Stock Market Rally
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Chicken Little Dreams of becoming Bullish |
Here is the updated checklist for bullishness from that post:





How is the relationship going so far?
The relationship with owning US stock is in the early stages. I would summarize the status as nervous and ready to run for the exit.
Chicken Little announced the purchase of US Stocks in July, "Chicken Little is now long stocks, for the first time in years."
Owning even a tiny amount of US stocks is hard for Chicken Little because I fear the looming depression. That said, success in many areas requires getting out of one's comfort zone.
Chicken Little announced the purchase of US Stocks in July, "Chicken Little is now long stocks, for the first time in years."
Owning even a tiny amount of US stocks is hard for Chicken Little because I fear the looming depression. That said, success in many areas requires getting out of one's comfort zone.
Chicken Little is Uncomfortable |
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