Allocation History

Cabana’s Allocation in Response to the Economic Cycle

• Scene

  Broad Themes

• Bullish

  Typical of a bull market cycle resumption following a correction or bear market. Risk assets, such as equities, outperform fixed income assets such as treasuries, bonds, preferred stocks and REITS.
• Moderately Bullish

  Typical of an uptrend within a cyclical bull market cycle. Equities of all types generally outperform. Fixed income and dividend paying assets may also be attractive.
• Cautiously Bullish

  Typical of a pullback within a cyclical bull market. Defensive equity sectors as well as fixed income and dividend paying assets outperform higher beta risk assets.
• Moderately Bearish

  This scene represents the typical uptrend within a larger, cyclical bear market. Income producing assets, including preferred stocks, corporate grade bonds and dividend paying large cap equities outperform higher beta assets.
• Bearish

  This scene represents a true bear market or significant correction. Risk off assets are attractive. These include U.S. Treasuries, gold and the U.S. dollar.

Repeating Economic Cycle

* Markets are a leading indicator (within 6 to 8 months) of the economic cycle, which is considered when determining the asset allocation.