About a year ago, we published a commentary titled, “A Bond Metric for Stock Markets?” (https://www.cumber.com/market-commentary/bond-metric-stock-markets). We recommend that readers spend three minutes reviewing that commentary.
In that piece we described a bond spread indicator that we use to evaluate credit risk and its impact on the economy and hence the stock market. We have updated the chart below. The picture presented is warning us of economic slowing and rising risk in those stocks that may be subjected to tightening credit conditions. Note that we are maintaining a cash reserve in our US Equity ETF portfolios.
Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.
Sign up for our FREE Cumberland Market Commentaries
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.