Hurricane Ian Notice

Due to the impending Hurricane Ian and its impact on the Sarasota area; Cumberland Advisors has mobilized and relocated our disaster recovery team to our Vineland, NJ office. If the storm does affect the Sarasota area, Cumberland Advisors’ staff members are on standby, and ready to provide you with any assistance you may need.  Our phone lines and emails will be monitored, and we will respond to matters on a priority basis.
 
For any urgent concerns you may also contact the following individuals by email directly:

For our clients residing in the Sarasota area, Cumberland Advisors knows nothing is more important than the safety of you and your family. We urge you to take the necessary steps to protect your loved ones. Check your supplies and make sure you have plenty of fresh water, flashlights, and a battery-operated radio. Cumberland values our customers’ security and peace of mind, and our goal is to provide outstanding service.
 
Thank you for entrusting us to continue to provide you service and may all stay safe.

 

Excerpt from the Wall Street Journal

Rising Rates Squeeze Bond Funds

Some funds that held up best strayed from their traditional investing grounds

by Sebastian Pellejero - Feb. 3, 2022

January’s market turmoil hit even the safest bond funds. Some of those that held up best strayed from their traditional investing grounds, or concentrated on the shortest maturities.

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David R. Kotok - In the News

 

Only a few U.S.-based funds that focus on investment-grade taxable debt have earned a positive return or traded flat through January, when including interest payments and price swings, according to data compiled by Morningstar Direct. More than 300 others posted total losses ranging from minus 0.1% to minus 3.6% over the same period.

These bond funds, known on Wall Street as “core” and “core-plus” funds, typically hold some combination of relatively safe assets such as investment-grade corporate bonds, mortgage-backed securities and Treasurys. The pandemic’s bond rally helped power total returns on some core funds as high as 18% just two years ago.

“The fund’s performance in January illustrates the benefits of such a flexible strategy,” he said.

David Kotok, chief investment officer of Cumberland Advisors, said rising rates are likely to spark bigger swings in the months ahead, but investors should resist the urge to make big moves, such as buying riskier debt, with the relatively safe portion of their portfolios. 

“Wear a helmet,” he said. “And don’t chase yield.”

Read the full article at WSJ (with subscription): https://www.wsj.com/articles/rising-rates-squeeze-bond-funds-11643836562


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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.

David R. Kotok
Published Date
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Wall Street Journal