Wall Street’s pros fess up: ‘We don’t know what’s going on’

Author: , Post Date: March 8, 2020
image_pdfimage_print

Wall Street’s pros fess up: ‘We don’t know what’s going on’

Cumberland-Advisors-David-Kotok-In-The-News

by Vildana Hajric and Elena Popina, Bloomberg – Published March 08. 2020

Excerpt below:

Along with the virus, here’s what people said has been driving the stock market this week. Optimism over Fed policy. Pessimism over Fed policy. Optimism over the government’s response. Pessimism over the government’s response. The Beige Book. Joe Biden.

The ink’s barely dry on one view, and the market goes careening the other way. It’s a futile, and infuriating, situation for investors and analysts. Forget about trying to predict where stocks will be in six months or a year. These guys can’t even figure out where they’ll be tomorrow. Everything depends on how the virus outbreak will play out. And nobody has a clue.

A string of companies have warned of hits to profits but few have said how big. Goldman Sachs and JPMorgan, among others, have cut their earnings forecasts in recent days. Cumberland Advisors, a money management firm with over $3 billion in assets, has taken down its projections three times, according to David Kotok, the firm’s chief investment officer.

“We aren’t getting guidance from companies because companies don’t know what to give,” Kotok told Bloomberg TV this week. “But we do know pain is coming on the earnings front.” The firm projects earnings of $160 for 2020, but may lower them again, he said. “We don’t know what the final numbers will be.”

Read the full article at The Day: https://www.theday.com/article/20200308/BIZ02/200309524

cumber map
Cumberland Advisors® is registered with the SEC under the Investment Advisers Act of 1940. All information contained herein is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services. Such an offer can only be made in the states where Cumberland Advisors is either registered or is a Notice Filer or where an exemption from such registration or filing is available. New accounts will not be accepted unless and until all local regulations have been satisfied. This presentation does not purport to be a complete description of our performance or investment services. Please feel free to forward our commentaries (with proper attribution) to others who may be interested. It is not our intention to state or imply in any manner that past results and profitability is an indication of future performance. All material presented is compiled from sources believed to be reliable. However, accuracy cannot be guaranteed.
Loading...