Cumberland Advisors Week in Review (Jun 15, 2020 - Jun 19, 2020)

Cumberland Advisors

Sun Jun 21, 2020

The Cumberland Advisors Week in Review is a recap of news, commentary, and opinion from our team. These are not revised assessments, and circumstances may have changed in the market from the time of original publication. We also include older commentaries that our editors have determined may be of interest to our audience. Your feedback is always welcome.

Cumberland Advisors' Weekly Recap

Thank you for joining Cumberland Advisors for this end-of-week update on market conditions, bonds & equities with Matt McAleer, and John Moussea, CFA.

</p> <div>This week:</div> <div></div> <div><strong>Matt McAleer on ETFs & Equities</strong><br /> -What is the market trying to tell us?<br /> -Matt has a relative strength chart to share and walk you through and he tells you what jumps out at him and what it's telling him<br /> -You might be shocked when he reveals what's behind various sectors<a href="/sites/default/files/uploads/2020/06/Chart-06192020-1280x720-1.jpg" target="_blank" rel="noopener noreferrer"><img src="https://mcusercontent.com/d6f020f3bd6a1e2c4eb254e6c/images/d4f0a0c4-dcbb-4f42-849f-125d0950fd5b.jpg" alt="Chart" width="600" height="337" align="middle" data-file-id="2708726" /></a></div> <div><strong>John Mousseau's Update on the Fixed Income Market</strong><br /> -The real story this week is in two places<br /> (1) Infrastructure Bill proposed - very interesting parts to it including "Build America" bonds; John details<br /> (2) Allowing municipalities to do advanced refunding and lower their debt service costs<br /> -What about American Airlines? No trouble selling their bonds. What does this mean?<br /> - John explainsThanks for joining us again this week. 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: <a href="https://youtu.be/UER1arjCCe0" target="_blank" rel="noopener noreferrer">https://youtu.be/UER1arjCCe0</a></div> <p>Stay safe, healthy, have a great weekend,<br /> and Happy Father's Day!</p> <p><strong>-Matt McAleer</strong></p> <p>Matt enjoys your feedback. You can reach him at:<br /> -Link to Matt's Email: <a href="mailto:Matthew.McAleer@Cumber.com?subject=Weekly%20Update" target="_blank" rel="noopener noreferrer">Matthew.McAleer@Cumber.com</a><br /> -Link to Matt's Twitter: <a href="https://twitter.com/MattMcAleer4">https://twitter.com/MattMcAleer4</a><br /> -Link to Matt's LinkedIn: <a href="https://www.linkedin.com/in/matthew-c-mcaleer/">https://www.linkedin.com/in/matthew-c-mcaleer/</a><br /> -Call Matt: <a href="tel:800-257-7013p346" target="_blank" rel="noopener noreferrer">(800) 257-7013</a></p> <p>Other questions or comments? Email us at <a href="mailto:info@cumber.com?subject=Comment" target="_blank" rel="noopener noreferrer">info@cumber.com</a> or give us a call at (800) 257-7013</p> <hr /> <header class="entry-header"> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-market-commentary-loretta-mester-interview/" rel="bookmark">Loretta Mester Interview</a></h2> <h6><strong>Author:</strong> David R. Kotok, <strong>Post Date:</strong> June 19, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-market-commentary-loretta-mester-interview/"><img class="attachment-post-thumbnail size-post-thumbnail wp-post-image" src="/sites/default/files/uploads/2020/06/Fed-president-CEO-Loretta-Mester-On-Demand-Interview-672x372.png" alt="Fed president & CEO Loretta Mester On Demand Interview" width="672" height="372" /></a></p> <p>Loretta Mester has a distinguished, multi-decade career with the Federal Reserve. She currently serves as president and CEO of the Federal Reserve Bank of Cleveland, votes on the FOMC, and immerses herself deeply in the issues of America’s banks and financial institutions. She agreed to an extended and detailed hour-long discussion with GIC. Here’s the […]</p> </div> <hr /> <header class="entry-header"> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-market-commentary-happy-birthday-to-cumberland/" rel="bookmark">Happy Birthday to Cumberland</a></h2> <h6><strong>Author:</strong> David R. Kotok, <strong>Post Date:</strong> June 18, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-market-commentary-happy-birthday-to-cumberland/"> <img class="attachment-post-thumbnail size-post-thumbnail wp-post-image" src="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Happy-Birthday-to-Cumberland-672x372.jpg" sizes="(max-width: 672px) 100vw, 672px" srcset="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Happy-Birthday-to-Cumberland-672x372.jpg 672w, /sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Happy-Birthday-to-Cumberland-1038x576.jpg 1038w" alt="Market Commentary - Cumberland Advisors - Happy Birthday to Cumberland" width="672" height="372" /> </a>June 18, 2020, is the 47th anniversary of the founding of Cumberland Advisors. My co-founding partner, the late Sheldon “Shep” Goldberg, and I had completed the filing with the Securities & Exchange Commission by mail. We complied with all appropriate rules. We used a special law firm whose expertise was needed in those days. And we […]</p> <hr /> </div> <header class="entry-header"> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-market-commentary-the-fomc-whatever-and-however-long-it-takes/" rel="bookmark">The FOMC: Whatever (and However Long) It Takes</a></h2> <h6><strong>Author:</strong> Robert Eisenbeis, Ph.D., <strong>Post Date:</strong> June 17, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-market-commentary-the-fomc-whatever-and-however-long-it-takes/"> <img class="attachment-post-thumbnail size-post-thumbnail wp-post-image" src="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-The-FOMC-Whatever-and-However-Long-It-Takes-672x372.jpg" sizes="(max-width: 672px) 100vw, 672px" srcset="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-The-FOMC-Whatever-and-However-Long-It-Takes-672x372.jpg 672w, /sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-The-FOMC-Whatever-and-However-Long-It-Takes-1038x576.jpg 1038w" alt="Market Commentary - Cumberland Advisors - The FOMC Whatever (and However Long) It Takes" width="672" height="372" /> </a>To no one’s surprise, the FOMC in its June meeting reaffirmed its 0–25 basis-point target for the federal funds rate. Markets did not react well, especially since the announcement came on the heels of a fairly downbeat assessment by Chairman Powell regarding the expected slow path for the recovery and the problems in the labor […]</p> </div> <hr /> <header class="entry-header"> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-market-commentary-aoc-or-mcc/" rel="bookmark">AOC or MCC</a></h2> <h6><strong>Author:</strong> David R. Kotok, <strong>Post Date:</strong> June 16, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-market-commentary-aoc-or-mcc/"> <img class="attachment-post-thumbnail size-post-thumbnail wp-post-image" src="/sites/default/files/uploads/2020/06/David-Kotok-Quote-Best-for-country-672x372.jpg" sizes="(max-width: 672px) 100vw, 672px" srcset="/sites/default/files/uploads/2020/06/David-Kotok-Quote-Best-for-country-672x372.jpg 672w, /sites/default/files/uploads/2020/06/David-Kotok-Quote-Best-for-country-1038x576.jpg 1038w" alt="David-Kotok-Quote - This is what’s best for my country" width="672" height="372" /> </a>“Do you have a forecast for the November election?” asked a client. Matt McAleer and I were doing a joint account review conference call. The question has been increasingly raised in our client and consultant review meetings. At the moment the answer is “no.” We watch the polls, and we noted the reduction in Trump […]</p> <hr /> </div> <header class="entry-header"> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-commentary-forrest-gumps-advice/" rel="bookmark">Forrest Gump’s Advice</a></h2> <h6><strong>Author:</strong> David R. Kotok, <strong>Post Date:</strong> June 14, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-commentary-forrest-gumps-advice/"> <img class="attachment-post-thumbnail size-post-thumbnail wp-post-image" src="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Is-a-refusal-to-wear-a-mask-as-Forrest-Gump-said-Stupid-is-as-stupid-does-672x372.jpg" sizes="(max-width: 672px) 100vw, 672px" srcset="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Is-a-refusal-to-wear-a-mask-as-Forrest-Gump-said-Stupid-is-as-stupid-does-672x372.jpg 672w, /sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Is-a-refusal-to-wear-a-mask-as-Forrest-Gump-said-Stupid-is-as-stupid-does-1038x576.jpg 1038w" alt="Market Commentary - Cumberland Advisors - Is a refusal to wear a mask, as Forrest Gump said Stupid is as stupid does" width="672" height="372" /> </a>I wish all readers a good Sunday morning. I have to be more sobering today than I have been in recent Sunday missives. Below is a quote from POLITICO, issued on Thursday morning, June 11, 2020, at about 8:30 AM. “VP MIKE PENCE visited a TRUMP/PENCE campaign office and posted a photo of the staff standing […]</p> </div> <hr /> <div class="categorysub"> <article id="post-52458" class="post-52458 post type-post status-publish format-standard has-post-thumbnail hentry category-market-commentary tag-covid-19 tag-leo-chen-ph-d tag-liquidity tag-sp-500"> <header class="entry-header"> <div class="categorysub"> <article id="post-52509" class="post-52509 post type-post status-publish format-standard has-post-thumbnail hentry category-market-commentary tag-david-r-kotok tag-diversification tag-diversification-of-risk tag-investments tag-strategy"> <header class="entry-header"> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-market-commentary-human-emotions-structure-of-strategy-and-diversification-of-risk/" rel="bookmark">Cumberland Advisors Market Commentary – Human Emotions, Structure of Strategy, and Diversification of Risk</a></h2> <h6><strong>Author:</strong> David R. Kotok, <strong>Post Date:</strong> June 10, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-market-commentary-human-emotions-structure-of-strategy-and-diversification-of-risk/"><img class="attachment-post-thumbnail wp-post-image aligncenter" src="/sites/default/files/uploads/2020/06/Human-Emotions-Structure-of-Strategy-and-Diversification-of-Risk-672x372.jpg" sizes="(max-width: 672px) 100vw, 672px" srcset="/sites/default/files/uploads/2020/06/Human-Emotions-Structure-of-Strategy-and-Diversification-of-Risk-672x372.jpg 672w, /sites/default/files/uploads/2020/06/Human-Emotions-Structure-of-Strategy-and-Diversification-of-Risk-1038x576.jpg 1038w" alt="Human Emotions, Structure of Strategy, and Diversification of Risk" width="672" height="372" /></a></p> <p>Below is a 20 year comparison of MDY (the S&P 400 midcap index) and SPY (the S&P 500 largecap index). The 20 year relative performance gap is obvious. Please look carefully at those interim periods when MDY violently outperformed SPY and also look at reversals. The typical investment question is “what happens next?” One of [<a href="https://www.cumber.com/cumberland-advisors-market-commentary-human-emotions-structure-of-strategy-and-diversification-of-risk/" target="_blank" rel="noopener noreferrer">Continued...</a>]</p> </div> </article> </div> <div class="categorysub"> <article id="post-52501" class="post-52501 post type-post status-publish format-standard has-post-thumbnail hentry category-market-commentary tag-employment tag-robert-eisenbeis tag-unemployment"> <header class="entry-header"> <div class="entry-meta"> <hr /> </div> <h2 class="inner_text_heading"><a href="https://www.cumber.com/cumberland-advisors-market-commentary-digging-deeper/" rel="bookmark">Cumberland Advisors Market Commentary – Digging Deeper</a></h2> <h6><strong>Author:</strong> Robert Eisenbeis, Ph.D., <strong>Post Date:</strong> June 9, 2020</h6> </header> <div class="entry-summary"> <p><a class="post-thumbnail" href="https://www.cumber.com/cumberland-advisors-market-commentary-digging-deeper/"><img class="attachment-post-thumbnail wp-post-image aligncenter" src="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Digging-Deeper-Who-Was-and-Was-Not-Employed-672x372.jpg" sizes="(max-width: 672px) 100vw, 672px" srcset="/sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Digging-Deeper-Who-Was-and-Was-Not-Employed-672x372.jpg 672w, /sites/default/files/uploads/2020/06/Market-Commentary-Cumberland-Advisors-Digging-Deeper-Who-Was-and-Was-Not-Employed-1038x576.jpg 1038w" alt="Market Commentary - Cumberland Advisors - Digging Deeper- Who Was and Was Not Employed" width="672" height="372" /></a></p> <p>On Friday, the Dow bounced over 750 points, reacting to the May employment report. In truth, it seems that participants never read beyond the first sentence, which stated: “Total nonfarm payroll employment rose by 2.5 million in May (private sector employment increased 3.1 million while government employment declined by 585 thousand) and the unemployment rate [<a href="https://www.cumber.com/cumberland-advisors-market-commentary-digging-deeper/" target="_blank" rel="noopener noreferrer">Continued...</a>]</p> </div> </article> </div> </header> </article> </div>

Material and commentaries published in the past may or may not be helpful in analyzing current economic or financial market activity. Please note publishing date when reviewing materials. Please email [email protected] for our current thoughts or to reach an advisor.

Cumberland Advisors Week in Review (Jun 15, 2020 - Jun 19, 2020)

Cumberland Advisors' Weekly Recap

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