7 December 2016: Bad news, what bad news?

bad-newsHow much unexpected (and in the old days: bad) news can the markets take? Big events like the Brexit, the election of Donald Trump and Renzi’s No were not able to impress investors. Have they forgotten about what bad news is? Are they in a state of neglect (“Hold your breath and do not suffocate…”) ? Or do they expect the Super Mario’s of this world (also known as Super Janets and Super Haruhiko’s) to step into the breach when things get out of hand? According to Michala Marcussen, global head of economics at Société Générale, in this morning’s Wall Street Journal, that is exactly what is going on: “The ability of markets to brush off many of these political events has come from knowledge that central banks stand ready to step in, in a big way”. So, investors are behaving exactly the same way as financial institutions were in the course of the previous decade. This time, it ain’t banks, but markets which are too big to fail. Until…

white-chapel-logo-smallStocks continued their rally, as if the only way is up. Major US indices added 0.3% on average and volatility further declined. The VIX is now below 12 points, a level that is usually not maintained for a very long time. Our XIV ETNs added another 3%. Return for the year is now well above 340%. Return for the quarter is approaching 50%.
White Chapel is also aware of the fact that a change of momentum might be just around the corner, but is not making the turn yet. We hold on to our XIV ETNs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter





Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 402%.


  • A cold night
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  • An open spot in the woods