The Week in Review
Performance updates from Cabana’s CEO
April 11, 2017
Market insight and a highlight of Cabana’s year-to-date performance.
Cabana’s six portfolios range from “Conservative” to “Aggressive” and include an income strategy portfolio. Performance is as of market close April 10, 2017 and is presented net of advisory fees and commissions.
All portfolios were down slightly for the week with the exception of the Alpha Income (+.13%). Down performance ranged from -.15% (Conservative) to -.30% (Balanced). As noted over the past few weeks, we are watching equities pull back from record highs achieved in February as a result of muted prospects for growth in the US economy. We are seeing neither buyers nor sellers of equities gain any advantage as market participants avoid making any real bets ahead of earning season, which has now kicked off. Money has moved into bonds in recognition of the continued pullback in yields. This has resulted in relative out-performance by our dividend payers and bond positions. The dollar’s slow churn is consistent with the weakness in domestic stocks as well as the drop in yields. Finally, it is worth mentioning that gold has taken off in the past month in response to the political/military situation in Syria and North Korea. Gold doesn’t pay a dividend and you cannot eat it, but it can be popular when things get messy. Investors in our Conservative Portfolio are loving their gold right now!
I stated several weeks ago that despite everything we see on television, in newspapers and on the internet, it is earnings that can drive market prices. We are going see a lot of them over the next two weeks and the aggregate result should drive the next move in the equity and bond markets.
Year-to-date net-of-fees performance:
ALPHA INCOME +3.23%
– G. Chadd Mason, CEO
*Performance numbers incated with (+) for positive return and (-) for negative return.
Performance is presented net of advisory fees and commissions (Conservative – Aggressive is presented net of 3% fees from January 1, 2017 – February 28, 2017 and 2% beginning March 1, 2017; Alpha Income is presented net of 2% fees)
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All performance returns are presented net-of-fees and include the reinvestment of dividends and capital gains. Benchmark comparisons are presented gross-of-fees.
Past performance may not be indicative of future returns. No current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels.
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