Is the Market Scared of Big US Deficits?

In the last two weeks, every asset has gone down. For sure, risky assets including stocks have gone down broadly this month, but the 'safety assets' of gold, bitcoin, and long-treasuries have also declined. I have long predicted that the end game of our current government folly will happen when the market cuts the US off from easy money (for example, HUGE deficits & Bond yields collapse).  We will see if the end game is here. 

The End Game will be rising Real Interest Rates


The Rainy Day Fund is Empty

The US economy has boomed for 11 years. The gains from that boom have been squandered, and we are not prepared for hard times. 

The Rainy Day fund is empty


February 2020, Chicken Little Portfolio Performance

Since 2015, Chicken Little was hiding in Treasury bonds fearing a Japanese/German style collapse in bond yields (see 'turning Japanese' for one of many articles).  Now that this nightmare of low US interest rates is a reality, what is next? First, the mother of all monetary bubbles, and then second, the imposition of discipline from the financial markets.

The bull market is built on e-printing and spending