Monday, September 18, 2017 2:31 PM EDT
What a crazy quarter we are closing. Washington chaos and antics, North Korean threats and missiles, hurricanes, uncertain Fed policy, no advancement of legislation or tax reform or healthcare reform or repatriation or infrastructure rebuilding – we encountered all this and more. And in the midst of it all, the Dow Jones Industrial Average hits a new all-time high in the middle of September.
The bifurcated stock markets had stellar stocks and also-rans. Year-to-date results for the FAANMG stocks – an acronym which equates to big-cap tech – are huge. Several thousand other companies whose shares trade in the US markets were laggard performers.
Interest rates also befuddled investors by staying low. And economic growth continued to be tepid. But the Dow marched to an all-time high. Who’d a thunk it?
We end the third quarter of 2017 with a nearly fully invested US stock market ETF portfolio. We favor the financials and have added to the insurance weight. As long as inflation and interest rates stay low and monetary policy remains easy, the stock market can head higher. The key is earnings, and they are improving. Hurricanes mean assistance from the federal government, and that means deficits expand. That is fiscal stimulus coming on top of monetary stimulus.
We expect economic growth to continue for some time, and we expect the US market to reflect the added economic activity that comes from replacement and rebuilding post-hurricanes. We think investors will like the results of the fourth quarter of this year and into 2018.
Disclaimer: The preceding was provided by Cumberland Advisors, Home Office: One Sarasota Tower, 2 N. Tamiami Trail, Suite 303, Sarasota, FL 34236; New Jersey Office: 614 Landis Ave, Vineland, NJ ...
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Disclaimer: The preceding was provided by Cumberland Advisors, Home Office: One Sarasota Tower, 2 N. Tamiami Trail, Suite 303, Sarasota, FL 34236; New Jersey Office: 614 Landis Ave, Vineland, NJ 08360. 1-800-257-7013. This report has been derived from information considered reliable, but it cannot be guaranteed as to accuracy or completeness. For a list of all equity sales/purchases for the past year, please contact Therese Pantalione at 1-800-257-7013, ext. 315. This report is currently about 1700 pages in length. It is not our intention to state or imply in any manner that past results and profitability are an indication of future performance. This does not constitute an offer to sell or the solicitation or recommendation of an offer to buy or sell any securities directly or indirectly herein. Cumberland Advisors supervises over $2.4 billion in separate account assets for individuals, institutions, retirement plans, government entities, and cash-management portfolios. Cumberland manages portfolios for clients in 48 states, the District of Columbia and in countries outside the U.S. Cumberland Advisors is an SEC registered investment adviser. For further information about Cumberland Advisors, please visit our website at www.cumber.com. Please feel free to forward this Commentary (with proper attribution) to others who may be interested. CONFIDENTIAL: This e-mail, including its contents and attachments, if any, are confidential. If you are not the named recipient please notify the sender and immediately delete it. Copyright and any other intellectual property rights in its contents are the sole property of Cumberland Advisors. E-mail transmission cannot be guaranteed to be secure or error-free. The sender therefore does not accept liability for any errors or omissions in the contents of this message which arise as a result of e-mail transmission. If verification is required please request a hard-copy version. It is important that you do not forward full account numbers, tax identification numbers or confidential personal information via email unless it is password protected Although we routinely screen for viruses, addressees should check this e-mail and any attachments for viruses. We make no representation or warranty as to the absence of viruses in this e-mail or any attachments. Please note that to ensure regulatory compliance and for the protection of our customers and business, your e-mail message is not private in that it is subject to review by the firm, its officers, agents, employees, and by federal or state regulatory authorities including but not limited to the Securities and Exchange Commission.
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