Cumberland Advisors Market Commentary –  Happy Birthday to Cumberland

Author: David R. Kotok, Post Date: June 18, 2020
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June 18, 2020, is the 47th anniversary of the founding of Cumberland Advisors.

Market Commentary - Cumberland Advisors - Happy Birthday to Cumberland

My co-founding partner, the late Sheldon “Shep” Goldberg, and I had completed the filing with the Securities & Exchange Commission by mail. We complied with all appropriate rules. We used a special law firm whose expertise was needed in those days. And we were in the waiting period when the letter arrived and the official start date of Cumberland became known.

1973. This was before the Arab-Israeli War. Before the first oil price spike, which took oil from $3 per barrel to $12. Before the subsequent inflation of the 1970s. Before Fed Chairman Arthur Burns ended up raising interest rates to what were then the highest rates since the Civil War.

Little did we know that oil would eventually hit $30 per barrel at the end of the decade. We didn’t know that after Burns would come William Miller briefly and then Paul Volcker, who would take interest rates to new all-time highs. We didn’t know that inflation in the United States would reach double digits.

One and a half years after we became official, the monster bear stock market in the United States had lost over 40% from peak to trough. The closing low in 1974 for the Dow Jones Industrial Average was 577.60. That’s right, the Dow was under 600 in 1974. The S&P 500 Index low was 65. No typo here!

The country was in full recession. Unemployment was high and still rising. We had the shock of gas lines for cars and no fuel for planes. We had the Watergate shock and Nixon’s resignation. We had the dollar devaluation and the demise of the Bretton Woods regime.

We survived.

Now we’re 47 years old. We’re 45 people. We are in almost all of the 50 states and have clients in several foreign countries. We have 18 Series 65-licensed professionals. The full story is on our website. We are still an independent, fee-for-service investment advisor.

Read all about us at www.cumber.com

David R. Kotok
Chairman of the Board & Chief Investment Officer
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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.
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