February 2021, Chicken Little Portfolio Performance

Question: What do you call a scared chicken? Answer: A chicken. The risks in financial markets seem even larger as the great white shark of higher interest rates appears (see last month's prediction). 

All debt crises end with higher interest rates 

February 2021 performance

The Dow Jones Industrial Average gained 3.19% in February 2021 while the Chicken Little portfolio gained 4.37% (thank you bitcoin.) 

Feb 2021YTD 2021
Chicken Little4.37%4.80%
Dow Jones Industrials3.19%1.22%

The February 2021 saw stocks around the world increase modestly, while gold and treasury bonds declined. Bitcoin continued its blistering ascent. 

AssetSymbolFeb 2021YTD 2021
Dow Jones IndustrialsDIA3.19%1.22%
Non-US StocksEFA2.24%1.44%
Emerging Market StocksEEM0.79%3.99%
US Long-Term BondsTLT-5.73%-9.15%

February 2021 portfolio positions.

Chicken Little is still mainly hiding in cash - 85% of the portfolio is in cash or short term US Treasuries. 

Three changes to the Chicken Little portfolio during the month. 1) Sold half the crypto after big gains. 2) Reduced the underweight position in long-term treasuries (would love rates to go a lot higher, then I could buy more Treasuries). 3) Started a probe into shorting stocks (QQQ and TSLA). 

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