Cabana’s CEO Chadd Mason shares his unique perspective on the markets here and across the world every Monday.
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On behalf of everyone here at Cabana, I want to wish our clients, investor partners and friends good health and peace at this time. What we are collectively facing as a nation is in many ways unprecedented. Never has our economy and day-to-day life come to a sudden and complete halt. In the coming months, we will see many… Read the full article.
U.S. and international equity markets dropped 11% just today and are down almost 20% this month alone. Year to date, the S&P 500 is down more than 25%. COVID-19 started in January as something that had the remote possibility of causing problems here in the United States. Today, less than three months later it has… Read the full article.
Given the continued bloodbath we are seeing in stocks, this commentary serves as follow up to the Special Report we released just over a week ago, on February 29. In that report, we noted that an explosive rally was likely early the week of March 2, due to short covering and extreme oversold conditions. We… Read the full article.
Today we are seeing the start of an expected bounce in stocks from extreme oversold conditions. We mentioned this in greater detail in the Special Report we put out over the weekend. We will watch closely over the next few days to find out if the market can hammer out a meaningful bottom. I do… Read the full article.
As soon as we mentioned the first sign that the coronavirus was impacting earnings (Apple lowered forward guidance), the virus broke out of general containment in China and began rapidly spreading into South Korea, Iran and Italy. This news provided a significant psychological impetus over the weekend to sell risk assets in the belief that we… Read the full article.
Earnings have continued to drive equity prices higher throughout the first half of February. This has occurred in the face of a variety of external threats, including ongoing domestic political upheaval and a worldwide coronavirus epidemic. As always, it is earnings that drive prices. The rest is just noise until the noise begins to impact… Read the full article.
U.S. corporate earnings continue to roll in beating expectations on both the revenue and sales side. The S&P 500 earnings growth rate remains at 8% annually, while year over year fourth quarter earnings saw an increase of 0.7% (according to FactSet). This is the first positive YOY quarterly growth in the S&P 500 since 2018…. Read the full article.
Last week, we discussed the coronavirus outbreak and implications it might have on markets going forward. I provided some statistics related to previous epidemics and the historical response to those by equity markets worldwide. That data is inconclusive at best. I ended the commentary by pointing out that this current medical crisis (like all worldwide events) does not… Read the full article.
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.
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.
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.
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.
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.
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.
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.
