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.

CUMBERLAND ADVISORS' WEEKLY RECAP

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.

 

Welcome back from Thanksgiving!

This week, we talk about:

-What might be coming up next week that could be a cause for concern
-What we see this week in the market that we liked, including
---Small Cap & Mid Cap continue their bid (they had been poor relative performers vs. S&P/Large Cap)
---Biotech in particular had a nice bid this week
-On the international scene, the August bottom in Europe looks like it's holding
---Much of the negative rates we've seen have improved
-Asia may continue to win/lose, reacting to trade talks
-Pullbacks

Watch in the video player above or at this link: https://youtu.be/yVz47LfUHuw

Have a great weekend and thank you for joining us at Cumberland Advisors.

Matt enjoys your feedback. You can reach him at:
-Link to Matt's Email: [email protected]
-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

Or email us at [email protected] or give us a call at (800) 257-7013

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John R. Mousseau, CFA, will be joining a large gathering of members of Wall Street's financial community in Orlando this winter season for The MoneyShow Orlando 2020. The three days of the conference will focus on new investment ideas that address the current economic and geopolitical environment and will feature tools, strategies, and advice which may help you better position your portfolio.

John will be a featured speaker, giving a review of the bond market in the past year (2019) and what we should expect from the bond market in a presidential election year.

To join John in February 2020 or learn more, please visit: https://conferences.moneyshow.com/moneyshow-orlando/

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From Yahoo Finance

Charles Schwab is reportedly buying TD Ameritrade. "The hidden piece of this for investors is the yield on the money market fund, the yield on the sweep," @CumberlandADV Chiarman David Kotok says. "And they tend not to look at it, and so there's a widening margin."

Highlight: Charles Schwab is reportedly buying TD Ameritrade. "The hidden piece of this for investors is the yield on the money market fund, the yield on the sweep," @CumberlandADV Chiarman David Kotok says. "And they tend not to look at it, and so there's a widening margin." pic.twitter.com/HxwdouQX1p

— Yahoo Finance (@YahooFinance) November 21, 2019

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Negative interest rates aren’t working

Excerpt from ForexLive’s “Negative interest rates aren’t working”

Nov, 25 2019

Author: Adam Button

There haven’t been any victories in the negative-rate world.

The ultimate test of any theory is in the results.

The idea behind negative interest rates is that they will spur borrowing and economic activity, leading to inflation and a weaker currency.

It may be too soon to judge the results but the early returns are poor. Earlier this month the CME looked at the results of negative rates in four regions: the eurozone, Japan, Sweden and Switzerland. They all went negative between 2014 and 2016.

None of the four “have achieved their inflation targets as a result of negative deposit rates,” the CME writes.

Moreover, the negative-rate experiment so far has failed to stimulate growth sustainably. Early returns in Japan, the eurozone and Sweden were solid but GDP has slumped back close to zero.

David Kotok of Cumberland Advisors is out with a paper attacking negative rates.

The notional pricing of the trillions of dollars and euros in swaps and derivatives is thrown into disarray. As a result, the banks and market agents sponsoring those derivatives must raise their pricing to protect themselves from this added risk induced by NIRP. When they raise their pricing, they add to transactional costs and therefore suppress economic activity at the margin. That is a reason NIRP slows growth and raises risk.

Read the full article at ForexLive’s website: https://www.forexlive.com/news/!/negative-interest-rates-arent-working-20191125

 

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In Case You Missed It...

Florida’s Red Tide: Possible causes, Who’s to blame?

Author: John R. Mousseau, CFA, Post Date: September 15, 2018

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