The Cumberland Advisors Week in Review is a recap of news, commentary, and opinion from our team.
These are not revised assessments, and circumstances may have changed in the market from the time of original publication. We also include older commentaries that our editors have determined may be of interest to our audience. Your feedback is always welcome.
As part of Cumberland Advisors’ continuous effort to maintain strong customer relationships, we offer this week’s short video discussing current market conditions and how we are positioning portfolios.
Thank you for joining Cumberland Advisors for this end-of-week update on market conditions, bonds & equities with me, Matt McAleer, and John Mousseau.
David Kotok also shot a video to accompany his commentary this week which you can see below.
I’m first up with my take on markets this week. I made it into the office with John Mousseau today though we sit about 50ft apart. We remain cautious and shoot our videos separately.
Next, John tackles the bond market. We’re still getting great feedback about the Federal Reserve’s unprecedented action last week. If you haven’t read it, Cumberland Advisors preceded their move with a public commentary and call to action entitled, “A Proposal for the Coronavirus Anticipation Note (CAN)” on April 01, 2020. Let us know what you think: https://www.cumber.com/cumberland-advisors-market-commentary-a-proposal-for-the-coronavirus-anticipation-note-can/
We all shot our own video this week and we appreciate you taking the time to join us.
Please reach out with any questions/comments you may have about this update, we always appreciate your calls, comments, and emails.
Watch in the player above or at this link: https://youtu.be/dkV9PjXfR6U
Have a safe weekend and thank you for joining us at Cumberland Advisors.
Matt enjoys your feedback. You can reach him at:
-Link to Matt’s Email: Matthew.McAleer@Cumber.com
-Link to Matt’s Twitter: https://twitter.com/MattMcAleer4
-Link to Matt’s LinkedIn: https://www.linkedin.com/in/matthew-c-mcaleer/
-Call Matt: (800) 257-7013
Other questions or comments? Email us at firstname.lastname@example.org or give us a call at (800) 257-7013.
Contact Matt or any one of our advisors by following this link: https://www.cumber.com/our-people/
Lots of Muni Bonds Are Going to Be Just Fine
by Barry Ritholtz – April 13, 2020
(Bloomberg Opinion) — In an extraordinary attempt to help the economy in the midst of the coronavirus economic downturn, the Federal Reserve’s balance sheet has ballooned to more than $6 trillion.
How this has affected fixed-income pricing, yield, risk and even trading is the subject of this week’s Masters in Business interview with John R. Mousseau, president, chief executive officer and director of fixed income at Cumberland Advisors. Mousseau also is the co-author of the book “Adventures in Muniland: A Guide to Municipal Bond Investing in the Post-Crisis Era.”
He notes the current slump is very different from the 2008-09 financial crisis. That event was driven by credit deterioration and mortgage defaults. Things only came to a head only after defaults soared and bond markets developed liquidity problems after the collapse of Lehman Brothers. In the fixed-income world today, the coronavirus pandemic is characterized mostly by economic paralysis, but so far not mass defaults.
Full story at Yahoo Finance: https://finance.yahoo.com/news/lots-muni-bonds-going-just-153254865.html
Court rules Puerto Rico residents eligible for SSI program
by Robert Slavin – April 14, 2020
A federal appeals court has upheld a decision that people in Puerto Rico are eligible for the Supplemental Security Income program.
As many as 700,000 people may be impacted by Friday’s ruling from the U.S. Court of Appeals for the First Circuit. The Social Security Administration runs SSI, which provides money to low-income people who are disabled, blind, or over 65. It also provides money to families with disabled children.
The appeals court ruling may impact as many as 700,000 people in Puerto Rico.Bloomberg News
Puerto Rico currently has a program jointly funded with the federal government that provides funds to these groups.
According to Jenniffer González-Colon, Puerto Rico’s non-voting representative in Congress, the average SSI beneficiary receives $553 monthly, whereas the average beneficiary under the Puerto Rico program receives $77 monthly. The maximum income permitted for an individual to qualify for SSI is $750 per month, compared to a maximum of $65 per month for the Puerto Rico program.
Cumberland Advisors Portfolio Manager Shaun Burgess said that he expected SSI to have more impact by allowing the local government to save money on the existing program than as a stimulus on the local economy. Cumberland owns insured Puerto Rico bonds.
Read the full story at The Bond Buyer: https://www.bondbuyer.com/news/court-rules-puerto-rico-residents-eligible-for-ssi-program
More News About Cumberland Advisors Here: https://www.cumber.com/news
Cumberland Advisors Market Commentary offers 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. Our readers appreciate its timeliness, depth of analysis, and quality of research.
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John Mousseau will be part of a MoneyShow presentation next week (Apr 23, 2020 1:00 PM – 7:30 PM EDT) and his talk will be Bond Markets Through the Coronavirus. He’ll cover analysis of treasury, taxable, and municipal markets, federal monetary policy, and administration of fiscal policy. More info, talks by other speakers, and registration can be found here: Resetting Your Portfolio in a Changing World
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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.