Just as quickly as the drumbeats of war with Iran quieted, we became overwhelmed with news of a rapidly spreading potential pandemic coronavirus. The virus started in China and has now been found in numerous countries around the world, including the United States. It is currently projected to be less severe than the SARS virus, which… Read the full article.
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In recognition of the Martin Luther King Jr. holiday, this commentary is as of Tuesday, Jan. 21. U.S. equity markets closed last week at new all-time highs. Foreign markets appear to be in the process of bottoming out after several years of underperformance. We are starting to hear a lot of predictions that foreign markets… Read the full article.
News-Driven Market Predictions Can Be a Recipe for Disaster: Market Commentary from Cabana’s CEO – January 13, 2020
What a week! In just about seven days, we (the U.S.) and the world have stepped back from the brink of war with Iran, Iran has shot down a civilian aircraft killing 176 innocent people (and then lied about it), and the Iranian people have gone from marching in the streets chanting death to the U.S. to… Read the full article.
Trusting the Markets Among Rising Middle East Tension: Market Commentary from Cabana’s CEO – Jan. 6, 2020
I hope everyone had a happy and heathy holiday! The older I get, the more I realize that we don’t get do overs in life. Let’s all strive to make 2020 the best year yet. The new year started out with some rocky and even scary international developments. Our present conflict with Iran has caused… Read the full article.
2019: A Great Year for Investors of all Types: Market Commentary from Cabana’s CEO – December 23, 2019
On behalf of everyone at Cabana, I would like to thank our clients and investor partners for your continued belief in us. Without you we could not do any of the things we work to do in hopes of making the world a better place. Please know that I do not take your trust for… Read the full article.
Investors Welcome a U.S.-China Trade Deal With Open Arms: Market Commentary from Cabana’s CEO – December 16, 2019
Equity markets around the world continued to grind higher last week and moved up again today. The much-anticipated trade resolution with China came through over the weekend. While this has been in the works for 18 months and the deal’s substance is debatable, investors appear buoyed by the fact that we can avoid additional tariffs… Read the full article.
Yet Again, the Market Focuses on What Matters —Interest Rates and Earnings: Market Commentary from Cabana’s CEO – December 9, 2019
After a rocky start to last week, U.S. equity markets rebounded and finished higher, led by Friday’s 1% bounce in the S&P 500. The employment number reported on Friday was exceptionally strong and is further evidence that economic growth can continue. This is frankly not surprising in that the stock rally over the past six… Read the full article.
Despite a shortened holiday week and some selling on Friday, markets finished out November with another weekly gain. I mentioned in my last commentary that November’s market performance has been impressive without exception. All major indices broke out to all-time highs after multiple failed attempts to clear resistance. Higher beta sectors took the lead in performance… Read the full article.
Markets broke out today after two weeks of digesting the October and November gains. The S&P 500 and the Nasdaq are at new all-time highs. Let’s take a look at how we got here. First off, China issued new guidelines for protecting intellectual property, which has been a concern for companies doing business there. This… Read the full article.
We hosted our monthly advisor webinar on Friday and touched on a variety of tools and resources we have in the works at Cabana, as well as the markets’ performance over the past six weeks. We often receive questions from advisors about how and when we know to reallocate portfolios, and this past week was… Read the full article.
This past week we saw major U.S. indices tread water at their all-time highs. Underneath the hood, money is rotating from low beta assets such as bonds, real estate, utilities and dividend payers, into cyclical assets like technology, transportation, energy and industrials. Financials continue to benefit from rising long-term interest rates and a steepening of the… Read the full article.
Our market commentary earlier this week touched on the internal rotation into risk assets that we’ve seen over the past month. In follow up, I have shared below a chart of performance within the various sectors of the broad U.S. equity market over the past 30 days. As you can see, money has rotated into… Read the full article.
The Fourth Quarter Rally We’ve Been Hoping For: Market Commentary from Cabana’s CEO – November 4, 2019
The S&P 500 and Nasdaq both closed last week at all-time highs. For the past several weeks we have noted improving conditions, which resulted in market participants reallocating to risk assets. Higher beta stocks like technology, small caps and emerging markets are outperforming defensive sectors like utilities, consumer staples and real estate. Financials are getting a… Read the full article.
Last week, we noted overall improvement in underlying economic conditions. That trend has continued. Earnings here in the U.S. have been better than expected, with a number of upside sales surprises. This data suggests that the ongoing trade dispute with China is having a muted impact on companies’ ability to make money. The 10-year Treasury yield continues… Read the full article.
Relatively strong earnings reports over the past week in the U.S. helped push our major stock indexes back within reach of their all-time highs. Banks and other financial firms brought in stellar reports. This has caused the financial sector to take the lead among equity components of the S&P 500. The Sector SPDR Index (XLF) is up… Read the full article.
Equity markets set politics aside last week and focused on renewed hope of a trade deal between the U.S. and China. Initial reports were that the two countries had agreed to a “phase one” (of several) compromise. It was reported that the Chinese government would commit to the purchase of U.S. agricultural products and the U.S…. Read the full article.
Last week saw more of the same volatility that has plagued equity markets since April. Over the past six months there have been no less than five trends encompassing moves up/down in stock prices greater than 5%. These wild swings in stocks have been accompanied by similar moves in bond yields and bond prices. All… Read the full article.
Question: Why do some Target Drawdown Portfolios add risk, while others reduce risk during the same reallocation? Shouldn’t all portfolios add risk at the same time? And likewise, shouldn’t all portfolios reduce risk at the same time? Answer: At Cabana, we reallocate portfolios and the assets that they contain in response to a variety of… Read the full article.
The past week saw continued selling in U.S. equity markets. The S&P 500 ended slightly more than 2% below all-time highs. Given all the recent impeachment noise, mixed messages regarding our trade with China, the Iran crisis and more, September ended on relatively good terms for investors. While domestic manufacturing is in a technical recession… Read the full article.
Fed Cuts Interest Rates Again as We Continue to Keep our Head Above Water: Weekly Commentary from Cabana’s CEO – September 23, 2019
During the past week, major U.S indexes reached resistance at summer highs before pulling back and churning 1.3% lower (S&P 500). On Wednesday, Chairman Powell and the Federal Reserve lowered the target federal funds rate by 25 basis points. This is exactly what bond and equity markets were pricing in, and despite some perceived hawkishness… Read the full article.