Tag Archives: Interest Rates

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David Kotok: Discussion of Financial Markets with Chuck Jaffe – Money Life (Radio)

Author: , Post Date: December 27, 2019
David-Kotok-Radio-Money-Life-Blue

David Kotok, Chief Investment Officer/Co-Founder, Cumberland Advisors, joins Chuck Jaffe on his program, Money Life, for an interview about what to expect for 2020. LISTEN BELOW OR AT THE LINK HERE: https://soundcloud.com/user-195074568/david-kotok-discusses-financial-markets-on-money-life-with-chuck-jaffe Like this interview? Listen to a previous 2018 interview David had with Chuck.   If you like this interview, many more are to […]

Surveillance: Negative Rates with Mohamed El-Erian (Bloomberg Radio Podcast)

Author: David R. Kotok, Post Date: December 24, 2019
Surveillance Negative Rates with Mohamed El-Erian (Bloomberg Radio Podcast)

Surveillance: Negative Rates with Mohamed El-Erian (Bloomberg Radio Podcast) Hosts: Tom Keene, Jon Ferro, and Pimm Fox David Kotok, Cumberland Advisors Co-Founder & CIO, says negative interest rates are at a peak. Michael Holland, Holland & Co. Chairman and Founder, thinks the Fed is far more important for markets than a U.S.-China trade deal. Dana […]

Cumberland Advisors Market Commentary – FOMC ZZZZZZZZZZZZ

Author: Robert Eisenbeis, Ph.D., Post Date: December 16, 2019
Federal Reserve - FOMC

“Boring” was how commentators on at least one network characterized the FOMC’s December 11th decision to hold rates constant. It was, in fact, a no-brainer decision given the strong labor market, which created 266 thousand jobs in November; strong consumer spending based upon the Black Friday and Cyber Monday sales data; an unemployment rate at […]

Healthcare & Energy Assets Poised to Outperform: (Bloomberg Radio Podcast)

Author: David R. Kotok, Post Date: December 11, 2019
Bloomberg-Radio-20191210

Cumberland Advisors’ David R. Kotok talks about his current market and investment outlook. Hosted by Lisa Abramowicz and Paul Sweeney. Running time 07:54 Play Episode Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE Also see David’s Nov 25, 2019 commentary on NIRP: https://www.cumber.com/cumberland-advisors-market-commentary-nirp-lagarde-trump-dickens-holidays/ If you’ve enjoyed this exchange, please feel free to explore […]

Bloomberg Surveillance: Negative Interest Rates with Kotok (Radio Podcast)

Author: David R. Kotok, Post Date: November 27, 2019
Market Commentary - Cumberland Advisors - NIRP Quote (David Kotok)

Cumberland Advisors’ David R. Kotok talks about negative interest rates, NIRP, and says the European Central Bank’s (ECB) Christine Lagarde has a difficult task right now. He also discusses China, the pork shortage, and the impact of viruses on the global food supply. Running time 25:02, David is introduced at the 10:45 mark – Play […]

Cumberland Advisors Market Commentary – NIRP, Lagarde, Trump, Dickens & Holidays

Author: David R. Kotok, Post Date: November 25, 2019
Market Commentary - Cumberland Advisors - NIRP (David Kotok)

Negative-interest-rate policies (NIRP) have been criticized by some (me included) and pursued by others, including Europeans aligned with former European Central Bank (ECB) president Mario Draghi. However, growing numbers of Europeans are becoming disenchanted with NIRP, and some are now shifting away from it. In our view, negative rates have, predictably, damaged growth for over five years. The ECB’s new president, Christine Lagarde, seems to understand that she faces a daunting task in extricating ECB policy from reliance upon negative rates.

Here is an excerpt from her first speech:

“In my view, since our challenges are common ones, we must meet them with a common response. This involves moving towards a new European policy mix, which has a number of key elements. The first is monetary policy, which I start with because it is my area of responsibility and which will undergo a strategic review due to begin in the near future.”

Hat tip to Kevin Humphreys for the reference. Kevin is manager, European money markets, for BGC Partners. He is based in London. Kevin has kindly given us permission to share his observations with our readers. We completely agree with his view.

“Having had a few references of late from board members to potential side-effects of European Central Bank monetary policy, it was perhaps of little surprise that the ECB in their financial stability report should highlight that sub-zero interest rates have forced large investors to take on more risks and businesses to take on more debt. Equally unremarkable were the other two main observations, that bank profitability prospects have weakened and that mispriced assets may represent a vulnerability.

What the FOMC Said

Author: Robert Eisenbeis, Ph.D., Post Date: November 1, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

Following the FOMC’s announcement of its third consecutive rate cut after its meeting this week, speculation immediately broke out among market participants about whether additional cuts or even rate increases might be on the horizon going into 2020. However, such speculation is probably more noise than substance at this point, since the Committee’s statement was […]

Bloomberg TV – Think the Fed Will Be Pat for a While, Says Cumberland’s Eisenbeis

Author: , Post Date: October 30, 2019
Bloomberg TV - Think the Fed Will Be Pat for a While, Says Cumberland’s Eisenbeis

Bloomberg TV – Daybreak Asia October 30, 2019 Robert Eisenbeis, vice chairman and chief monetary economist at Cumberland Advisors, discusses the potential for another Fed rate cut in December and beyond and his thoughts on communication from the central bank. He speaks on “Bloomberg Daybreak: Asia.” (Source: Bloomberg)   WATCH HERE (or click the embedded […]