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.
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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.
