The Week in Review
Performance updates from Cabana’s CEO
April 18, 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 17, 2017 and is presented net of advisory fees and commissions.
Portfolios were mixed with the Conservative and Balanced up .16 and .20 respectively. The others were down slightly ranging from -.12 (Aggressive and Moderate) to -.07 (Alpha Income).
We saw continued indecision in the equity markets at the first level of support below all-time highs reached in February. We also saw the continuation of money moving into more defensive yield assets such as bonds and REITs. Low beta dividend payers are outperforming high beta investments across the spectrum. This is best evidenced by corporate bonds now outperforming junk bonds on a relative basis.
As I have mentioned previously, the equity markets are not likely to move higher given what we are seeing with other asset classes. Earnings could impress enough that investors would again embrace the prospects for growth and money would flow from these yield based assets back into higher beta equities , or equities may crack and pull back, perhaps significantly. We do not make predictions but invest based upon what is before us. With that said, our software has indicated a change in the underlying environment and we have reallocated all of our portfolios into a more defensive posture.
Year-to-date net-of-fees performance:
ALPHA INCOME +2.40%
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)
-G. Chadd Mason, CEO
*Performance numbers incated with (+) for positive return and (-) for negative return.
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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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