Goldilocks Is Back, With a Face Mask On. Bears Beware

Author: , Post Date: February 4, 2020
image_pdfimage_print

Excerpt from…

Goldilocks Is Back, With a Face Mask On. Bears Beware

The promise of easy money means there’s no alternative to U.S. stocks, damage from China’s coronavirus epidemic permitting.
By John Authers – February 4, 2020

Cumberland-Advisors-David-Kotok-In-The-News

Vincent Deluard, global macro strategist at INTL FCStone Financial Inc. in San Francisco, suggests that the coronavirus scare intervened in a move toward reflation — a stance that the manufacturing data appear to confirm. He had been recommending moving into assets that traditionally benefit from an inflationary environment, such as emerging markets and commodities, but concedes that this is now a very difficult call to make until the full extent of the epidemic is clear.

Meanwhile David Kotok, the veteran market observer who heads Cumberland Advisors Inc., suggests that the most likely scenario is as follows: China has allowed the virus to spread too far before taking action, and now has little choice but to take measures that will have a severe effect on its economy. It also risks losing credibility in trade negotiations, and seeing its position weakened. Meanwhile in the rest of the world, the epidemic adds to the pressure on governments and central banks to keep conditions easy. With interest rates held low, and stocks having just sold off, he moved to buy U.S. stocks Monday, depleting his position in cash.

Full story: https://www.bloomberg.com/opinion/articles/2020-02-04/coronavirus-global-easing-should-support-u-s-stocks

cumber map
Cumberland Advisors® is registered with the SEC under the Investment Advisers Act of 1940. All information contained herein is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services. Such an offer can only be made in the states where Cumberland Advisors is either registered or is a Notice Filer or where an exemption from such registration or filing is available. New accounts will not be accepted unless and until all local regulations have been satisfied. This presentation does not purport to be a complete description of our performance or investment services. Please feel free to forward our commentaries (with proper attribution) to others who may be interested. It is not our intention to state or imply in any manner that past results and profitability is an indication of future performance. All material presented is compiled from sources believed to be reliable. However, accuracy cannot be guaranteed.
Loading...