The Cumberland Advisors Week in Review + Digest is a compendium of news, commentary, and opinion from or of interest to our team. These are not revised assessments, and circumstances may have changed in the market from the time of original publication. We may include older and/or guest commentaries that our editors have determined may be of interest to our audience. Your feedback is always welcome.
Our latest Week in Review Video is now available online. This end-of-week update on markets generally features equities, bonds, and trading highlights. Thank you for joining us.
Matt McAleer & Equities
- Tech took a breath as markets exhaled this week
- Materials, Industrials & Real Estate leading sectors over last 30 days
- Keep an eye on flows into defensives & be cautious if trend continues
John Mousseau & Bonds
- Slight grind lower in bond yields
- Saw bond fund inflows as good demand for Munis holds
- Jobs report was higher than expected but last month's was revised down
Watch using either the link above or the following:
Cumberland Advisors’ Week in Review on YouTube
Access past video updates including the most recent via this YouTube Playlist URL: https://www.youtube.com/playlist?list=PLu1JZIQ1mPrtx_q7i_C9FWN-cb9f594C1
Please send any feedback from today’s email/video to Matt McAleer. You can reach him at:
Email: [email protected]
Twitter: https://twitter.com/matthewcmcaleer
LinkedIn: https://www.linkedin.com/in/matthew-c-mcaleer/
Call Matt: (800) 257-7013 ext. 346
Other questions or comments? Email us at [email protected] or give us a call at (800) 257-7013
Have a great weekend,
Cumberland Advisors
Catch up on recent Market Commentaries
from Cumberland Advisors
Featured Commentary:
CDS and Interest Rates: 2023 & Beyond
February 27, 2024
A few readers have questioned the use of credit default swap (CDS) prices as a determining factor in setting interest rates. Please note that CDS is beyond the control of the Federal Reserve. Prices about the default risk insurance on the United States are set in global markets and really determined by the buyers and sellers from around the world, with very little participation by American investors.
Here’s a table of the starting and ending CDS prices on the United States according to Bloomberg data. This is for the calendar year 2023.
12/30/22 12/29/23
1Y CDS 15.230 36.275
5Y CDS 24.970 46.410
10Y CDS 32.865 55.050
Note that these prices are in euros and in basis points. Each basis point is 1/100th of 1%.
Some have asked how much of this price change is due to the expanding federal deficit and how much is due to the political turmoil of debt ceiling default threats and lack of budget resolutions. That is a fair question.
Here’s my take.
Continued at link below:
https://www.cumber.com/market-commentary/cds-and-interest-rates-2023-beyond
Camp Kotok Corner
How Millennials Are Shifting the Housing Market
Newsweek article Featuring Alejandra Grindal
Feb 23, 2024
Alejandra Grindal & David R. Kotok take on the Economy & Surrounding Issues in August 2022
Alejandra Grindal is the Senior International Economist for Ned Davis Research Group and she's the primary person in charge of the firm’s global economic outlook, and is responsible for identifying global economic trends and themes. We got a chance to catch up with her in 2023 at a local university event and both fish and talk with Alejandra in Maine in 2022 which you can see here: https://youtu.be/KpEA3uSUWsc?si=kx1iVe8y_EbnKq7o
In this Newsweek piece, she weighs in on millennials and baby boomers and their effects on the housing market. "They (baby boomers) are the second-largest age cohort in the U.S., and they're also driving up demand, partly because they can afford to," she said. Millennials, in 2020, overtook baby boomers to become the largest generation in the U.S. She notes that millennials are also changing the profile of homeowners in the U.S., with "more single-person buyers."
Check out Newsweek to see what else she and others had to say about the housing market at link below:
URL: https://www.newsweek.com/how-millennials-are-shifting-housing-market-1870526
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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.
