Is Climate Warming Creating More Dangerous Hurricanes?

Two Hard-Hitting Hurricane Seasons

Last year was a September to remember in the US as far as hurricanes go. First, Harvey hit Texas with 130-mph winds and thundering rains totaling up to 60 inches in places, setting all-time US rainfall records. Next, Irma created havoc across the Caribbean and Florida as the strongest Atlantic hurricane on record, with 185-mph sustained winds that leveled islands and nearly created a nightmare scenario in Florida. And of course no one will forget Maria, which hit an ill-prepared Puerto Rico with catastrophic results.

Here are some recent pieces in which I describe the effects of these hurricanes:

https://www.cumber.com/key-west-bob-bunting/
http://bobsstocks.com/cuba-caribbean-hurricanes-now/
https://www.sarasotamagazine.com/slideshows/2018/7/1/how-cuba-saved-florida-from-a-category-5-hurricane

From June through August the 2018 hurricane season yielded a slightly elevated number of storms, but all were weak. Elevated wind shear, a near-record cold Atlantic Ocean, and Sahara dust clouds combined to lull us to sleep – that is, until Florence formed in September off the African coast, just as Irma had. This time the track was more northwest, across thousands of miles of open water. Finally, Florence hit a patch of warm water, found low wind shear, and fought off the dust. The result was the first major hurricane of 2018 and one that had a clear shot at the Carolina coast.

Packing 140-mph winds after a 24-hour cycle of super-rapid intensification, Florence was not a storm to discount. The Carolinas are a magnet for Atlantic hurricanes: Think Hazel, Hugo, Gloria, and Donna, among others. But what made Florence even more of a threat was both human denial and the natural slope of the continental shelf, which is shallow and thus amplifies storm surge, especially for storms coming into the coast at right angles. Usually storms approach from the south, not from the east. It makes a difference. Florence came in perpendicular to the coast and acted much like a plow pushing the water at the coast, creating a large storm surge even as the storm itself weakened, striking with top winds of 106 mph.

Like Harvey, this massive storm ground to a halt just as it was making landfall. As with Harvey, record rains pelted North and South Carolina for days, dumping trillions of gallons of water on ground already saturated from a very wet summer. With storm surge and 30+ inches of record-setting rainfall, epic flooding resulted. Many rivers crested at levels that are hit only in a 1000-year flood, inflicting widespread major flooding that continued for weeks and killed not only people but millions of animals, creating billions in losses.

Finally, it was October 2018, and many began to think we were done with hurricanes. After all, at this point, although there had been many weak tropical storms and hurricanes, there had been only one major storm, and now Florence was out of the news.

Back in June, the Sarasota magazine published a nice summary of hurricanes, and I was pleased to be part of the spread of articles. Here is an excerpt from the discussion of Sarasota and hurricanes:
“Sarasota is more vulnerable to storms – like Wilma or Charley – that form in the Caribbean and enter the Gulf of Mexico, usually early or late in hurricane season. (The most perilous time for us, Bunting says, is the first two weeks of October.) But even those storms rarely hit our stretch of the west coast. Because of the shape of Florida’s land mass and atmospheric factors related to the rotation of the earth, they tend instead to make landfall to the south, often around Naples, and travel east across Florida, or to curve north and hit the northern Gulf Coast.

“Does this mean we can breathe easy? Hardly, says Bunting, who confesses, ‘I couldn’t sleep’ during the days that Irma threatened our coast. ‘All it takes is one,’ he says. ‘Only one.’”

You can read the entire article(s) here: https://www.sarasotamagazine.com/articles/2018/6/27/major-hurricanes-rarely-hit-our-region-here-s-why

Sure enough, in the second week of October a weak tropical system emerged south of Cuba, in the area climatologically favorable for late-season hurricane formation. This worrying development was made even more scary by a very warm loop current in the Gulf of Mexico, which was moving warmer than normal sea-surface temperatures off the West Florida Centennial Shelf northward to a position near the Big Bend region of Florida. Tropical Storm Michael entered the Gulf, and as it moved almost due north, it began to strengthen.

At first a Category 1 hurricane, Michael soon sucked energy from the warm loop current and intensified with a bang! During the next 24 hours the storm churned northwest of Sarasota toward Mexico Beach in northwest Florida. The Category 1 storm exploded to a very strong Category 4 with 155-mph winds; and the eye wall, surrounding a pinpoint eye, struck Mexico Beach and surroundings like a large tornado, complete with a storm surge. Wiping the Earth’s surface clean at the impact point, Michael registered the third lowest pressure ever recorded in the eye of a US hurricane making landfall – 919 mb. Imagine the panic of people watching the radar images like the one below as the storm approached the beach.

Hurricane Michael ravaged the town of Mexico Beach, Fla

Note, too, the small eye surrounded by the red eye wall as Michael ravaged the town of Mexico Beach. As the hours passed, much of northwest Florida and parts of Georgia saw record wind speeds and mass destruction totaling billions.

Is Climate Change Responsible?

Are hurricanes getting stronger because of climate warming? Are nature’s largest storm events and the rainfall totals they bring being magnified by the climate change? Is humanity responding to the threats or simply ignoring reality in hopes that the threats will go away or that our descendants will mitigate them later? Does sea level rise play a role in what appears, to the uninitiated, to be worsening storm impacts? Are we still dealing with critics who say that what we are seeing is nothing unusual or that everything can be blamed on a warming climate?

Let’s answer these questions to the extent that they can be answered. While 2017–18 featured the strongest set of hurricanes ever recorded, there isn’t enough evidence yet to say that hurricanes are stronger now than they have been in the past. This year, including Florence and Michael, has been above normal with regard to the number of storms (15) but normal with respect to the number of major hurricanes (2). Those two storms happened to hit the Mid-Atlantic Coast and Gulf Coast. It just takes one such event to change perceptions, and we had two.

But it is accurate to say that for each degree the air warms, it can hold nearly 4% more water. It is also accurate to say that warmer ocean waters have more heat potential, thereby increasing storm intensity, all other things being equal. So while the recent record of hurricanes does not prove in a statistical sense that hurricanes are more intense because of a rapidly warming climate, there is room for legitimate concern.

Explosive storm development also seems to be different and more concerning than in the past. Harvey, Irma, Florence, and Michael all had 24-hour periods during which they exploded from Category 1 to Category 4 or 5! Warmer sea-surface temperatures are clearly one major factor. In heavily populated areas, if such explosive storm development occurs, evacuation just cannot happen in time. How to deal with this issue will be one of the most talked-about topics for years to come as we learn how to adapt to climate-warming issues.

There is also evidence that heavier rain events are being caused in some part by the warming climate. First, as noted above, warmer air can hold more moisture; but also, as the earth warms, the jet streams tend to set up further north and are weaker than was normal for most of the 20th century. These two factors mean that storms hold more rain and tend to slow down and meander rather than moving at a brisk clip with the help of jet stream winds. Harvey and Florence certainly did just that, and I agree with the IPCC conclusion that slower-moving storms with heavier precipitation are becoming more common.

What, if anything, are we doing about these trends? Certainly, an effort is occurring in the US and other countries to limit greenhouse gases, with or without the Paris Agreement, and much more is needed in both the short and long term. But with regard to hurricanes in North Carolina, there has been little action to protect the eroding shoreline. A recent news article tells the story:
https://www.huffingtonpost.com/entry/north-carolina-sea-level-rise-hurricane-florence_us_5b985a87e4b0162f4731da0e

In Florida, local communities are getting more involved in protecting themselves, but still there is still too little happening on state and regional levels.

Sea level is now rising about an inch every seven to eight years now. Along the North Carolina coast the sea level has risen about 6.5 inches since 1950. When storm surges occur on top of even a modest sea level rise and the continental shelf is shallow, the surge/flood impacts from both major and minor hurricanes are amplified. This was the case with Category 2 Florence!

An interesting point and counterpoint were recently raised in California regarding climate warming, at the Climate Action Summit (https://www.globalclimateactionsummit.org) in San Francisco, which featured many impressive and interesting presentations.

One troubling takeaway was the emphasis on attributing every bad weather event, from droughts to fires and floods, to climate warming. Fires, floods, and droughts have been around for a very long time. The key point, however, is that our climate is warming much faster now than climatic changes have unfolded in the past. Changes that used to take thousands of years are being compressed into decades. This precipitous rate of change is what is so troubling!

The counterpoint was a series of panel discussions organized by a group called the Hartland Foundation, specifically to rebut the Climate Action Summit and climate warming in general. See https://youtu.be/5_XSrrw4DDc.

This group was less impressive and seemed to focus more on PR than scientific discussion. I was struck by the dearth of IPCC members or representation from first-rate science institutions at this gathering. This group failed to identify the rate of climate warming as unusual and highly correlated to human-generated greenhouse gas emissions.

Ignoring what is and hoping for the best is not a strategy. Shooting the messenger , climate science, is costing us big-time, but perhaps the lessons from Florence will lead to a more reasoned and action-oriented approach. As many readers know, I am not in the camp that expects worst-case scenarios of sea level rise by 2100. See my article
https://www.cumber.com/guest-commentary-by-bob-bunting-its-getting-hotter/.

But there is no reason to believe that the past and current trend of sea level rise will suddenly stop and good reason to believe, on the other hand, that the rate will increase as global temperatures continue to rise.

Evidence Calls for Action

While fair debate is welcome and needed, dismissing climate warming as nonexistent is not helpful, nor is sensationally predicting the end of the world by 2100. What is helpful is concerted action to mitigate the impacts of the most likely climate-warming scenarios. Preventing further damage to the climate by limiting greenhouse emissions, pushing technological solutions, and promoting scientific understanding are key to being successful – as I know we can be!

Policy reacts to the will of society but with a time lag. That’s why it’s so important to study this issue and not be drawn in by polarizing positions. It is all too easy to jump on bandwagons, but the answers are now largely known for those who want to deal with high-probability scenarios. In North Carolina an opportunity was missed on a statewide level. During the 1990s, as I discussed in my previous article published by Cumberland, the US and the world missed an early opportunity to deal with climate warming. Now it’s time for local action that will trickle up rather than down. Perhaps North Carolina and its coastal communities will help lead the way.

Florida is one of most vulnerable areas, with $7T in real estate along the beach lying in harm’s way and with climate-enhanced red tide becoming more of a real problem. Florida has the opportunity to lead the climate adaptation movement for local and regional mitigation of the additional climate changes sure to come in the next decades.

Herein lies a series of opportunities for local and regional coordination through a new center in the Sarasota-Manatee area that can take developing climate science and tailor it for decision makers in state, regional, and local governments. Billions of dollars already being spent can be better utilized for the formation of effective, coordinated, and enduring adaptive solutions.

Also, because the adaptation to climate warming is one of the most important issues of our time, the situation is ripe for entrepreneurs who want to stop talking and start doing! I predict that new business development in this area will create an economic boom for those who can seize the opportunity!

Sarasota -Manatee is ground zero for climate impacts from rising sea levels, explosive hurricane development, and red tide. Because it is, it can be a hub that helps Florida, the region, and local levels to create a platform for academia, government, and the private sector to foster mitigation and adaptation as well as to catalyze economic opportunities that mitigation will surely spark.

Florida and the Sarasota-Manatee area have the expertise, financial resources, and leadership to help broker a more effective approach to dealing with climate-change impacts. It’s time to take the abundant resources we have available and organize them, much as Steve Jobs and company did when they reinvented the phone with the iPhone. They took the pieces that we all use in our daily lives, from music to calendars and from news to maps, and handed them back to us in the form of an “on the go” platform that integrated what already existed into a truly transformative device. That example provides the inspiration that we can do it, too; but this time we are challenged to creatively adapt to deal with an issue that will fundamentally impact all our lives. Stay tuned!

We thank Bob for allowing us to publish his work: Bob Bunting – atmospheric scientist, author, educator, and entrepreneur.


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

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January 25th and California Fires

The January 25th GIC-USFSM conference on adaptive climate change, Adapting to a Changing Climate: Challenges & Opportunities, to be held at the University of South Florida Sarasota-Manatee, includes discussion of fires as well as hurricanes. Here is a recent Bloomberg story for reference: “What Wildfires and Hurricanes Mean for the Global Economy” (https://www.bloomberg.com/news/articles/2018-11-22/what-wildfires-and-hurricanes-mean-for-the-global-economy).

2018 has been a horrible and murderous year for fires. We all know that. The issue for climate change deniers and for climate change believers is whether we can expect normalcy or whether something is different now, requiring adaptive solutions. January 25 will focus on that question.

Cumberland Advisors is proud to sponsor this conversation, which presents skilled professionals in a transparent and independent forum. Attendance costs only $50 to cover lunch (registration here).

Now we offer a guest commentary about the California fires. We thank our good friend and GIC board colleague Philippa Dunne for sharing her essay with our readers. Philippa is coeditor of three  macroeconomic newsletters – The Liscio Report, which has a trading focus, Sightlines Bulletin, which offers “concise data-driven monthly analyses of the direction of the American economy,” for professionals and academics, and TLR Wire, frequent, short notes and graphs on important aspects of fresh data missed by the mainstream intended for all readers You can learn more about both and subscribe at http://www.tlranalytics.com.

California Fires, by Philippa Dunne

Two differences jump out when we attend conferences with a higher percentage of speakers who were not born in the US, but may teach here, and we share these now as observations, not criticism. There is considerably more concern voiced about the effects of market concentration and pricing power, which we have outlined; and there is a general sense that US citizens, perhaps especially those in the financial markets, are not accurately anticipating the market impacts when, say, lawsuits and insurance claims caused by extreme weather start rolling in at an ever faster pace.

I grew up in Malibu, where fires were a central part of my childhood.

Every fire has its own unforgettable personality. One marches as a belligerent wall, missing little in its path to the shore; one changes its mind at the last minute, trapping the fire crews and their equipment on the wrong side of the column; and some, like the recent Woolsey fire, flame seemingly in all directions, pouncing on areas the size of football fields in a second.

And they all have different ways of introducing themselves. Sometimes a bunch of tumbleweeds thud into the house: the Santa Ana wind. Sometimes sirens race up the highway; by the time I was five, I could tell which canyon they turned into; and sometimes I would first see reflected flames flickering in my window. Then it’s grab all the animals and your toothbrush, unlock all the doors and gates for the firemen, kiss the ground by your bedroom door with hope, and head for the Georgian Hotel in town. From our rooms there we would stay up all night, looking out across the bay as the unspeakably beautiful flames winged up and down the mountains, seemingly in silence although we knew they were panting.

Firefighting is a male-dominated field. The first female firefighter in this country was Molly Williams, Volunteer #11, a slave owned by a New York City merchant. There have been all-female forest crews since the 1920s, but in the US only 2% of firefighters are women. Los Angeles Mayor Eric Garcetti promised that by 2020, 5% of the LAFD will be women; currently that’s 3.5%. I’m not being sexist when I refer to my wonderful childhood heroes as men.

An owl lands on the beach; a coyote limps on singed foot pads, showing no interest in a fleeing rabbit. A firefighter staggers in the wind.

The fires have always been unpredictable and terrifying, but they have moved into a new dimension. The Paradise fire has set records, but the recent Woolsey fire that flew to the beach in west Malibu, bad as it was, isn’t up to today’s standards. In 1970, the Santa Ana, blowing at 80 miles an hour and gusting to twice that, drove a 30-mile wall of fire from Newhall to Malibu. First we heard it mentioned on the news, and then it was barreling over the mountain so quickly that we barely had time to load up the animals. It did take out the Spahn Ranch, where Charlie Manson and his crew lived (no comment), but also the iconic Serra Retreat, a real loss. That fire was a record-setter then, but it isn’t even in the top twenty these days.

I recently visited friends in Santa Barbara and finally saw firsthand the incomprehensible destruction in the path of the fire and floods of last year. One friend, a real estate agent in Montecito, one of the most idyllic places on earth, said that he is having a tough time determining if business is slow because of interest rates or because buyers are afraid to invest in multi-million-dollar properties threatened by fires and rushing mud. We drove through the slide area: Geologists are still calculating how much the mud (A Look Inside the Montecito Disaster Probe), the consistency of honey and traveling at up to 27 miles an hour, was needed to launch “giant boulders” down the washes.

Thank you, always, to the fire crews, both the pros and the inmate volunteers making $2 a day (and $1 an hour when they are fighting active fires) – may many more go on to join Cal Fire; to the California Highway Patrol – you haven’t lived until a CHP yells at you to “gun it” in order to get over a smoldering divider; and to the migrant farmers who kept working in the fields through the smoke.

My job during the fires was always to drag panicked horses out of their stalls and onto the beach. They really do run back into burning barns. To give you an idea what it’s like, during the Newhall-Malibu fire I was pulling a mare across the sand when I noticed I was stumbling inexplicably, or so I thought. I looked down at my foot, now in slow motion, which was sitting on a board. I picked up my foot and the board came with it, held by a large nail that I couldn’t feel. A stranger ran over, said “It’s okay to scream,” pulled the board off, and raced me across the sand to the vet’s office. I got a tetanus shot and no other treatment. There was no time for that. And mine was just an ordinary fire experience.

No horses were lost in that canyon, but we feel a bit like those horses right now. We’re not a political newsletter, and this is one of the most divisive topics in our country right now. Voicing these opinions could lose subscribers, but we are willing to take that risk. We all have different opinions and want to hear yours.

The optimistic approach is the one that takes steps to slow the climate changes that produce increasingly heavy weather and the historic droughts that make devastating fires more likely. Stephen Pekar, who runs the paleoclimate research lab at the City University of New York, among his many other activities, notes that climate changes are now taking place between 100 and 1000 times faster than they have in the past. To get to the point of taking steps to curb climate change, we have to change the conversation. The risk is asymmetrical – didn’t that Schopenhauer guy have something to say about that? While it’s true that there have always been dramatic shifts in climate, the drivers of those shifts can be measured, and they do not fully account for what we are seeing. We all need to know what the cores drawn from the Greenland ice sheet are telling us. That key research is beautifully chronicled in Richard Alley’s Two-Mile Time Machine (https://www.amazon.com/Two-Mile-Time-Machine-Abrupt-Climate/dp/0691102961). Otherwise we have only opinions.

There are tremendous opportunities in the renewable energy sector, jobs that would help balance the increasingly unequal opportunities available to our working classes. For renewable sources to really take off, we’d have to drop subsidies for the fossil-fuel producers and let the markets work. When the mechanization of our farms sent farm work tumbling from something like 30% of the workforce to the current 1–3%, depending on how you jigger the numbers, the transition was largely enabled by the war effort. Workers were moved from the farms into the factories, and much of what they made was battle-related. Had they been left in the rural areas to fend for themselves, as so many of our machinists have been, what would have happened? Of course, we’d advocate for a green-energy rebuild and retrofitting, not more weaponry, and the tools are ready at hand.

Frank Nutter, head of the Reinsurance Association of America, told writer Eugene Linden a quarter of a century ago that “global warming could bankrupt the [reinsurance] industry.” Linden also points out that while the Insurance Information Institute was singling out Florida as having the greatest exposure to the combined effects of a changing climate, Governor Rick Scott and Senator Marco Rubio went on record to dismiss the threat.

Cargill’s Gregory Page agreed to be on the board of bipartisan Risky Business, which aims to put a price on all of this. You can tell he doesn’t like being there, and good for him for stepping up. He did say he was willing to do so only because the outfit aims to document risks, not look for solutions. Whatever, but he did add that in agriculture the “threat of long-term weather-pattern changes cannot be ignored.”

The IMF produced a 2015 report (https://www.imf.org/en/News/Articles/2015/09/28/04/53/sonew070215a) showing that around the world fossil fuel subsidies amount to $5.3 trillion, or 6.5% of world GDP. Climate-minded economists reckon it would take 1% of world GDP to devise and implement remediation. But that $5.3T amounted to more than total health spending of all the world’s governments at the time. Apparently, the IMF rechecked their work when they saw their results, and we rechecked ours. (Read that again if you need to.)

Around the world we’re using big tax dollars to support a backward-looking sector, making it harder to implement programs tailor-made to get us beyond stagnant wage growth of our middle classes. Although fossil fuel operations lift wages in a slim tranche of well-paid workers, they are not engines of job creation. Green projects, whether they be high-tech explorations or muscle-power retrofits, create jobs that pay well, and retrofits are labor-intensive. They also offset municipal costs for heating and cooling, and cutting back on the time we spend stuck in traffic jams would raise productivity. There’s a lot more data; but as long as people see climate change as an ideological battle, data do not help much. We’ll be happy to send links; just email Philippa: philippa@panix.com

Cue in the creative destruction of a true market economy.


Here is the link to the latest US government report on climate change. We recommend perusal with and open mind and a willingness to alter views: Fourth National Climate Assessment, Volume II: Impacts, Risks, and Adaptation in the United States, https://nca2018.globalchange.gov.

For more information on how to join us in this important conversation at the January 25th GIC-USFSM conference, please visit www.usfsm.edu/climate.

GIC & USFSM - Adapting to a Changing Climate - Challenges & Opportunities
 

David R. Kotok
Chairman and Chief Investment Officer
Email | Bio


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

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Red Tide, January 25th Sarasota Conference on Climate Change

The January 25th GIC-USFSM conference, Adapting to a Changing Climate: Challenges & Opportunities, to be held at the University of South Florida Sarasota-Manatee, is open to the public. The sponsors, including Cumberland, helped so as to allow the cost of registration to be held to $50, a registration fee that covers the lunch.

GIC & USFSM - Adapting to a Changing Climate - Challenges & Opportunities
 

Climate-change believers and deniers are welcome. The purpose of the event is to put facts and details in the public domain for discussion.

Red tide and the toxins it carries are among the issues we will take up. Ask any Sarasota restauranteur or hotel manager what has happened to business these last few months, and the economic impact on Florida becomes clear. All political personalities interested in mitigating the effects of red tide on their jurisdictions are welcome to attend or send staff.

Let me get to a specific health issue related to red tide. I will start with a quoted email from a national personality whom I know personally. He contracted an illness believed to be a result of breathing red tide toxin or the related algae bloom toxin.

He wrote:

“I’ve easily found articles with various analyses of probable causality between bodily responses to Brevetoxins and auto-immune system responses generally associated with organizing pneumonia.

“The experts I have want to identify similar episodic correlations in order to study specific trends and narrow the range of potential causality.

“Has your group associated among any Florida pulmonologists that have seen similar cases?

“One of the fundamental issues may be that the primary group at risk of serious chronic illness is visitors that have no prior immunities from low doses of Brevetoxin exposure. They suffer the effects of a red tide bloom of Karenia brevis algae and then leave Florida before any of the major chronic illness symptoms appear.

“They know they are sick but have no contact with medical professionals that understand normal red tide irritations. That now seems to be the primary missing link.

“Research is so much fun (if only I didn’t have to concurrently live the experience).”

My friend also sent this report:

“David,

“Initial biopsy result on the biggest spot in my lung found ‘organizing pneumonia’ and no malignancy – good news.

“The point at which the coughing and respiratory irritation that resulted in this particular ‘pneumonia’ began, however, directly coincides with my exposure to red tide in April. My med records are very clear that there was no cough or other irritation symptoms before that exposure.

“If there would be any interest in this situation among you and your friends, let’s talk.

“I’m going to enjoy Thanksgiving with family and head to FL. If there’s interest, maybe we can gather and discuss a follow-up for the public health of FL, as Judy and I traverse the Tampa area after Thanksgiving.

“My AA pulmonologist and I will do more to follow up in Dec. I’ve got numerous other spots we need to analyze further before declaring ‘victory.’”

Dear reader: My point of this personal story is direct. This could be you or me. Research and discussion are needed. And what we’re dealing with here is a second-order effect of climate change, just like growing hurricane intensity and rising sea levels.

We are going to have a full auditorium on January 25, with thorough presentations and discussions of facts.

Below is a series of extracts and links on the red tide and toxin issues:


“Harmful Algal Bloom (HAB)-Associated Illness… Harmful algal blooms (HABs) are the rapid growth of algae that can cause harm to animals, people, or the local ecology. A HAB can look like foam, scum, or mats on the surface of water and can be different colors. HABs can produce toxins that have caused a variety of illnesses in people and animals. HABs can occur in warm fresh, marine, or brackish waters with abundant nutrients and are becoming more frequent with climate change.”
(Centers for Disease Control and Prevention, https://www.cdc.gov/habs/index.html)


“Exposure to harmful algal bloom toxins found in cyanobacteria (blue green algae) or Karenia brevis red tide can cause severe illness in pets, livestock, and wildlife when contaminated water is ingested or when animals lick their fur after swimming.”
(Florida Dept. of Health, http://www.floridahealth.gov/environmental-health/aquatic-toxins/aquatic-toxins-program-animal-health.html)

“About Red Tide… Algae are vitally important to marine ecosystems, and most species of algae are not harmful. However, under certain environmental conditions, microscopic marine algae called Karenia brevis (K. brevis) grow quickly, creating blooms that can make the ocean appear red or brown. People often call these blooms ‘red tide.’

“K. brevis produces powerful toxins called brevetoxins, which have killed millions of fish and other marine organisms. Red tides have damaged the fishing industry, shoreline quality, and local economies in states such as Texas and Florida. Because K. brevis blooms move based on winds and tides, pinpointing a red tide at any given moment is difficult.

“ASSESSING THE IMPACT ON PUBLIC HEALTH

“In addition to killing fish, brevetoxins can become concentrated in the tissues of shellfish that feed on K. brevis. People who eat these shellfish may suffer from neurotoxic shellfish poisoning, a food poisoning that can cause severe gastrointestinal and neurologic symptoms, such as tingling fingers or toes.

“The human health effects associated with eating brevetoxin-tainted shellfish are well documented. However, scientists know little about how other types of environmental exposures to brevetoxin—such as breathing the air near red tides or swimming in red tides—may affect humans. Anecdotal evidence suggests that people who swim among brevetoxins or inhale brevetoxins dispersed in the air may experience irritation of the eyes, nose, and throat, as well as coughing, wheezing, and shortness of breath. Additional evidence suggests that people with existing respiratory illness, such as asthma, may experience these symptoms more severely.”
(Centers for Disease Control and Prevention, https://www.cdc.gov/hab/redtide/pdfs/about.pdf)


Here are additional red tide resources:

“Harmful Algal Bloom (HAB)-Associated Illness… Publications, Data, & Statistics”
(Centers for Disease Control and Prevention, https://www.cdc.gov/habs/publications.html)

Here is the link to the latest US government report on climate change. We recommend perusal with an open mind and a willingness to alter views: Fourth National Climate Assessment, Volume II: Impacts, Risks, and Adaptation in the United States, https://nca2018.globalchange.gov/.

For more information on how to join us in this important conversation, please visit www.usfsm.edu/climate

David R. Kotok
Chairman and Chief Investment Officer
Email | Bio


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

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Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.




Global Dialogue & Exchange of Divergent Perspectives: The Rocky Mountain Economic Summit

Leo Chen, Ph.D., Portfolio Manager & Quantitative Strategist for Cumberland Advisors, will join me to speak on July 12th for an annual gathering of economists, bankers, academics, and finance industry representatives known as the Rocky Mountain Economic Summit. If you missed Dr. Chen’s recent commentary on the VIX and volatility in the market, you can still read it online here or around the web; it’s been getting a bit of press this week: The VIX and the S&P 500-An Equity Market Duet

If you’d like to know more about Leo, there is a link to his bio at the bottom of the commentary.

The Global Interdependence Center and The Bronze Buffalo Foundation are the hosts for this year’s Rocky Mountain Economic Summit. We’ll be meeting in Victor, Idaho, just outside of Jackson Hole, Wyoming, at the Teton Springs Lodge & Spa. This is the tenth annual Rocky Mountain summit which will bring together economists and entrepreneurs from around the country to discuss issues and opportunities relating to the global economy. We just held an equally impressive gathering in Florida for our Financial Literacy Day that included president and CEO of the Federal Reserve Bank of Atlanta, Raphael Bostic. Join us in Wyoming for another top caliber event that continues the Global Interdependence Center’s work in promoting global dialogue and the exchange of divergent perspectives. Seating is limited, so please check GIC’s website for availability.

Patrick Harker, President and CEO of the Federal Reserve Bank of Philadelphia, will deliver a keynote address this time and attendees can ask specific questions of Harker or other speakers. We have just posted Raphael Bostic’s talk during Financial Literacy Day at USFSM on the Cumberland Advisors website, so you can read a transcript of my talk with him or watch the video version here: www.cumber.com/financial-literacy-day
David Kotok & Raphael Bostic

If you missed it, I suggest you read our recent missive, Lunch In Punta Gorda. Nine people in total met in a private room for lunch in Punta Gorda, Florida with Martin Barnes as the organizer. We discussed The Fed, politics, the bull market, trade and trade wars, gold, banking, and more. Danny Blanchflower seeded the idea, and we were joined Tim Dalton, Ned Davis, Bob Eisenbeis, Jeff Saut, and a certain ancient one (who must remain anonymous) but who calls himself “economist 63,” and another one who calls himself the “Swiss Gnome.” We published our takeaways, being candid and careful about attributions.

A full list of speakers and the agenda for the Rocky Mountain Economic Summit can be found at GIC’s website and GIC Members are invited to stay for the private Roundtable Discussion on Friday morning, July 13th. This meeting will be held under the Chatham House Rule, so expect candid opinions and economic, social and political issues discussed in depth.

Please join us.

David R. Kotok
Chairman and Chief Investment Officer
Email | Bio


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

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Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.




Stock Market targeted on April 5

The stock market will be a prominent topic at the April 5 Financial Literacy Day in Selby Auditorium on the USFSM Sarasota campus.

In the first stock market session, nationally known technical analyst Katie Stockton will pair with Cumberland’s quantitative mathematician, Professor Leo Chen, in a broad discussion of techniques used in stock market management. Alison Gardner of RBC Wealth Management will moderate that session.

The second stock market session is a powerhouse that includes Jeff Saut, chief investment strategist of Raymond James; Jeremy Schwartz, director of research at WisdomTree; Adam Johnson, formerly an anchor at Bloomberg TV and now the author of Bullseye Brief; and Cumberland’s director of ETF strategies, Matt McAleer. This top-flight panel will be moderated by Bill Kennedy, chief investment officer at Fieldpoint Private. Anyone interested in the stock market is in for an exceptional day.

This April 5 event is an open forum: Individual investors, state and local officials, financial institutions, pension trustees, philanthropy activists, and policy makers are all welcome. At Cumberland we believe everyone benefits from increased financial education.

A full program will be offered on April 5. In addition to the keynote speech by Atlanta Fed President Raphael Bostic, featured speaker Chris Whalen, Chairman of Whalen Global Advisors LLC and Global Independence Center (GIC) board member, will discuss the US banking system. Panel discussions will cover not only munis but also the outlook for the US and world stock markets, the global economic outlook, and the use of quantitative measurement and technical analysis in the stock market.

The cost is only $50 to register ($25 students), and that is just to help cover GIC’s and the University of South Florida Sarasota-Manatee’s expenses. Cumberland is sponsoring the event and hosting lunch and the closing reception. Attendees are welcome for the whole day or part of the day.

Please reserve your spot soon – we expect to have a full auditorium. The event is open to public participation. All are invited and welcome. You can make your reservation online and learn more at GIC’s website https://www.interdependence.org/events/browse/programs/second-annual-financial-literacy-day-update-financial-markets-economy/.

David R. Kotok
Chairman and Chief Investment Officer
Email | Bio


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

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Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.




Congressional Panel Confirmed for February 22

We have now confirmed a bipartisan congressional panel for the February 22 “Cuba and the Caribbean: What Now?” event. Florida Congressman Carlos Curbelo, whose district includes the Keys, which bore the direct hurricane hit, is joined by Virgin Islands Congresswoman Stacey Plaskett. The moderator of this session is Ben White, journalist from Politico and CNBC political correspondent.

What now, Cuba - USF Sarasota-Manatee

The full program and registration information can be obtained with this link: https://www.wusf.usf.edu/cuba_and_the_caribbean_what_now.

This full day is designed to inform a broad range of people — tourists, travel agents, investors, policy wonks, and weather-forecasting folks. And those who wish to think about the government’s responsibility and actions in the hurricane-damaged parts of Florida or Texas or Virgin Islands or Puerto Rico or Cuba or elsewhere in the Caribbean, this program is for you.

The event costs only 50 bucks, and that covers lunch. This open forum is made possible by USF Sarasota-Manatee, the Atlanta Fed Americas Center, and the Global Interdependence Center. All media are welcome to cover the panel, and the entire community is invited.

Cumberland Advisors provided a grant to USF Sarasota-Manatee and to GIC to assist this event aimed at public education. Please come.

Cumberland Advisors is a proud sponsor of the Global Interdependence Center.




Report from San Diego

Dear Readers,

We had the wonderful opportunity to present the Heldring Award to Boston Fed president Eric Rosengren at the GIC meeting in San Diego, held on Friday, January 12, at the Rady School of Management. This is GIC’s second year in San Diego but the first time in partnership with Rady, which provided a first-rate venue.

The conference theme was “Money, Models and Digital Innovation” and included cryptocurrency issues and discussion of the outlook for the economy and interest rates and volatilities. Speakers included President Rosengren, Dave Altig of the Federal Reserve Bank of Atlanta, Don Rissmiller of Strategas, and Nobel Prize winner Harry Markowitz, professor of finance at Rady.  Imagine the thrill; we had lunch Harry M.  He is super sharp, quick wit and does it at age 90.

We are sharing links below so that you can join, after the fact, the 75 or so of us who packed the Rady business school to enjoy the excellent presentations. Links include the presentations themselves, press coverage, the Rady business school blog post about the event, attendees’ comments, and a photo of the award presentation.

The presentations: https://www.interdependence.org/events/browse/programs/gic-frederick-heldring-award-global-leadership/.

The press coverage: https://www.interdependence.org/news/money-models-digital-innovation/.

The blog post that the Rady School shared on January 17: https://t.co/7VaTuMfmWr.

Feedback from the guests, collected here in PDF format: Attendee Feedback

Photo of the award presentation with GIC’s board/advisory council members: http://www.cumber.com/wp-content/uploads/2018/01/Award-to-Rosengren.jpg.

Note that all GIC events may be found at www.interdependence.org. Next up for us is the event in Sarasota on February 22, when we will examine the issues surrounding Cuba and the Caribbean. The detailed presentations will include commentary on hurricanes and geopolitics, energy, and recovery. For the detailed agenda and registration see http://usfsm.edu/event/cuba-and-the-caribbean-what-now/.

Note that all GIC events may be found at www.interdependence.org. Next up for GIC is the event in Sarasota on February 22, examining the issues surrounding Cuba and the Caribbean. The detailed presentations will include commentary on hurricanes and geopolitics, energy, and recovery. I will deliver the opening remarks and Jill Fornito whom many of you have come to know at Camp Kotok events will be in attendance. For the detailed agenda and registration see http://usfsm.edu/event/cuba-and-the-caribbean-what-now/. The small collage shown here was made from Sharon Prizant’s photos taken during a brief discovery trip to Cuba. She’ll be happy to share many more if you’re able to make this event in Sarasota.

Visit Cumberland Advisors website to see pictures documenting the struggles of the Florida Keys after Irma and a handful from inside Cuba.

Cumberland Advisors is a proud sponsor and member of the Global Interdependence Center.

David R. Kotok
Chairman and Chief Investment Officer
Email | Bio


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

Sign up for our FREE Cumberland Market Commentaries

Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.