Bear Market operations escalate


Chicken Little has shorted more stocks to re-establish the full size short position. The short was initiated at Dow 35,000 on Feb 4, 2022 (see post). On Feb 24, the position was cut in half at 32,300 (see post). Now back to full position at 34,550 today. The short will be covered if the Dow can take out the old high of 36,952. 

Bear Market operations are underway


February 2022, Chicken Little Portfolio Performance

 Paying the piper

Higher real interest rates are coming. Today, the 10-year Treasury yields 1.78% and CPI is 7.5% so the real rate is negative 5.72%. Over the coming cycle, the real rate can increase to over positive 5%. In the new environment, asset prices will decline, prudence will be rewarded, and profligacy punished. 

Higher real interest rates are coming