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 August 14, 2017 and is presented net of advisory fees and commissions.
All portfolios were down for the week ranging from -0.12% (Conservative) to -0.95% (Balanced). The Conservative outperformed due to the gold position in that portfolio. The Alpha Income was down -0.59%.
Political tensions, coupled with seasonality factors gave investors an excuse to sell cyclical equities and move toward more defensive positions, like consumer staples. Retailers have borne the brunt of the selling (despite strong sales numbers out today). International stocks also pulled back, as would be expected, in response to threats of war. Interestingly, we did not see treasuries rise in response to the general flight to safety. The US Dollar also remained muted. *FactSet is reporting that more than 70 percent of companies have outperformed earnings expectations and more than 60 percent have outperformed sales numbers. This could be why we are not seeing any shift to bonds on equity weakness. Ultimately, it appears that earnings are all that matters. As pointed out last week, we have remained in a “Goldilocks scenario throughout the year and are entering a period of seasonal weakness”. Some volatility is inevitable and should be expected. To parody Dos Equis’ Most Interesting Man in the World – stay disciplined, my friends.
*FactSet Research Systems Inc., trading as FactSet, is a multinational financial data and software company headquartered in Norwalk, CT, United States. The company provides financial information and analytic software for investment professionals.
Year-to-date net-of-fees performance:
ALPHA INCOME: +3.96%
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 indicated with (+) for positive return and (-) for negative return.
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