Cumberland Advisors Week in Review
(July 12, 2021 - July 16, 2021)
Thank you for joining Cumberland Advisors for this Friday July 16, 2021 end-of-week update on market conditions, equities & bonds with our Executive Vice President & Director of Equity Strategies, Matt McAleer and our President, Chief Executive Officer, & Director of Fixed Income, John R. Mousseau, CFA.
Matt McAleer - Equities / ETFs:
- The Russell 2000 shook things up this week
- Matt talks about relative strength and Cumberland Advisors' perspective and strategies in relation to it.
- There is "wisdom in the market."
- We will keep our eye on some strong sectors that are now showing some shorter/intermediate-term weakness. We want to see "higher lows."
- The interest rate market often is a "barometer" for what the economic expectations are 3/6/8/10 months down the road.
John R. Mousseau, CFA - Fixed Income:
- Puzzling week in bonds
- The monthly numbers on inflation:
-- CPI .9% vs. .5%
-- PPI 1% vs. .6%
-- Big jumps, well above expectations
-- Across the board, everything is up
- The real question for us at Cumberland is the run rates, even though they will moderate in the months to come
- In the fall, if these numbers have come down but the run rate is at 4 and 5% it's very hard to justify a 10 year bond at a 1.35
- Some of the reasons why you've seen a decline in yields is partly summer doldrums, partly fear of the new Delta variant on COVID, and partly just some reversion of the mean given the fact that yields moved up from .5 last summer on the 10 year to 1.75 by the time we got towards the end of March. All of that probably figures into some of current rates.
- We do expect yields to go up as the year goes on
- Cumberland has bond portfolios positioned defensively
- Bond Markets tend to be slow to react to inflation numbers; they are waiting to see if inflation is permanent or transitory.
- Enjoy your weekend.
Please reach out with any questions/comments you may have about this update; we appreciate your calls, comments, and emails. Watch in the player above or at this link: https://youtu.be/mYjXOUzkf3M
Have a great weekend!
-Matt McAleer & Cumberland Advisors
Please send Matt McAleer any feedback from today's email/video. 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
Other questions or comments? Email us at [email protected] or give us a call at (800) 257-7013.
See the full week in review via this link: Cumberland Advisors Week in Review
(July 12, 2021 - July 16, 2021)
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