Market insight and a highlight of Cabana’s year-to-date performance:
Cabana’s seven portfolios range from “Conservative” to “Aggressive” and include an income strategy and an “Accumulator” portfolio. Performance is as of market close on April 16, 2018 and is presented net of maximum advisory fees and commissions.
I am happy to report that all of Cabana’s portfolios were up over the past week, between +0.94% (Alpha Income) and +1.94% (Accumulator). In general, high beta outperformed low beta. This is usually a good sign. In addition, we have now seen equity markets test support at their 200-day moving average three times since early February. Each time support held. Today we saw technology shares and “FANG” stocks breakout after months of underperformance. As stated above, it bodes well for equity markets when we see higher risk stocks lead. We also saw the Dow and S&P 500 close above their respective 50-day moving averages this afternoon. The transportation index cleared its 50-day moving average yesterday. These observations are only “technical” evidence of improving conditions, but price doesn’t lie. Things are stabilizing in both the equity and bond markets. We are just beginning to receive the flood of earnings reports that will be pushed out over the next two weeks, but markets are clearly expecting to see strong results. Let’s never forget that earnings trump everything, even Trump himself. So far, so good. We remain cautiously bullish and are preparing to re-allocate if markets continue to move higher.
On another note, I’d like to announce that Cabana’s Portfolio’s are now available within the Riskalyze Advisor software. This new integration allows advisors to compare our tactical portfolios with a clients’ existing investments. Riskalyze is an award winning, third-party independent risk alignment platform. The platform allows clients and advisors to work hand in hand to mathematically capture risk tolerance and quantify suitability. A client’s Riskalyze score, paired with the platform’s third-party analysis of Cabana’s portfolios (or any portfolio), can provide further confidence that they are invested in the portfolio most suited to their risk tolerance. For Cabana, it is another step in our continued quest to make investing as transparent as possible. More information can be found here on our blog.
In the next week we will be providing a brochure along with our new fact sheets to advisors and clients alike that will outline the risk score of each of our portfolios as well the scores for our benchmarks, including the S&P 500, the Vanguard Balanced Index and the PIMCO Total Return Bond Fund. We will also include instructions for new Riskalyze users explaining how to access, compare and stress test the portfolios. For those of you familiar with Riskalyze, I am including the Riskalyze symbol for each portfolio below. Along with our Suitability and GIPS brochures, this information goes a long way in explaining to our advisor and retail clients what it is that we do and why we do it.
Conservative: #CABANAC Conservative Core Tactical
Moderate: #CABANAM Moderate Core Tactical
Balanced: #CABANAB Balanced Core Tactical
Growth: #CABANAG Growth Core Tactical
Aggressive: #CABANAA Aggressive Core Tactical
Alpha Income: #CABANAAI Alpha Income Core Tactical
Year-to-date net-of-fees performance:
ALPHA INCOME: -0.91%
Performance is presented net of the maximum advisory fees and commissions (2%). Numbers indicated with (+) for positive return and (-) for negative return.
-G. Chadd Mason, CEO
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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.
All investment strategies have the potential for profit or loss. All strategies have different degrees of risk. There is no guarantee that any specific investment or strategy will be suitable or profitable for a particular client.
Historical performance results for investment indexes and/or categories typically do not show the impact of transaction and/or custodial charges or the deduction of an advisory fee, which may decrease historical performance results. There can be no assurances that a strategy will match or exceed its benchmark.
Some performance returns do not represent actual trading using client assets but were achieved through retroactive application of a model designed with the benefit of hindsight. Model returns have inherent limitations. Specifically, these returns do not represent actual trading and may not reflect the impact of material economic and market factors on the adviser’s decision-making if the adviser had actually managed the client’s money during this time frame.
Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark.
Cabana LLC manages assets on multiple custodial platforms. Performance results may vary based upon differences in associated costs and asset availability within the Cabana Model.