Cumberland Advisors | Apr 25, 2017 01:06PM ET
We were fully invested in our US ETF strategies before the weekend French elections. We are still there and overweight financials (banks) and tech. In our volatility strategies we are also fully invested and have been for over a week. These VOL strategies are mathematically driven and they gave us the signs we needed to get in while market agents were worried about geography. In bond accounts, we continue a barbell strategy. We find the tax-free, longer-term municipal bonds of high-grade credits to be a compelling bargain.
h3 Geography/h3There are many more geopolitical risks that we see recurring in the Middle East and Africa. And we watch risk rise in the Arctic as the melting ice fields enlarge Russia’s frontier and as their military presence expands in the region. And we wonder what two former Colombian presidents are doing in private conversation at Mar-a-Lago.
This coming weekend will be interesting, as President Trump holds a rally in Pennsylvania while the White House correspondents hold their gala in Washington. Trump promises the framework of a tax reform plan. The markets are waiting for details. If the plan is delivered and seems reasonably sure of passage, we believe markets will go higher.
As for the WH correspondents’ gala, we wonder whether Alex Baldwin will make a surprise appearance. Now that would make for entertaining split-screen TV watching.
/h3
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