Chicken Little Sells Stocks (Again)

Chicken Little is short US stocks. The short was entered at Dow 35,800 and is 36% of the portfolio. The short will be covered if the Dow makes a new high. The Federal Reserve has laid the groundwork for stagflation and asset markets may be on their way down.   

Still bearish even though it has been costly



November 2021, Chicken Little Portfolio Performance

In 1958, AW Phillips created the 'Phillips Curve' concept that central banks could print to create a bit more employment at the expense of a bit more inflation. Recently, central banks tried to print a lot more employment, and argued that the 'Phillips curve is not dead." - see Jerome Powell's 2018 article favoring printing. Unfortunately, the mistakes of Central Bank overprinting threaten all of us.

The Price of easy money in Venezuela