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 21, 2017 and is presented net of advisory fees and commissions.
All portfolios were down for the week in response to a drop in equity prices and a big jump in volatility. The Moderate, Growth and Aggressive Portfolios were down -0.94%, -0.92% and -0.91% respectively. The Balanced outperformed again (due to international exposure) and was down only -0.46%. The Alpha Income Portfolio was down -0.53%.
As previously discussed, we have entered a seasonally weak period for the equity markets. In addition, many traders are on vacation, resulting in lower volume and more volatility. The VIX spiked last week reflecting fear returning to a ridiculously complacent market over the past six months. Whether this was simply due to the seasonality factor and protective put buying, geopolitical tensions, domestic social issues or something more material to market performance (like earnings) remains to be seen. We have seen big tech regain its leadership position. The S&P 500 and the Dow have also survived a re-test of the pullback of two weeks ago. As I write this, equity markets have ended the day strongly positive. Small-caps, mid-caps and consumer discretionary continue to lag. This is concerning. In strong markets, small caps typically lead and everyone knows that more than 70 percent of GDP is due to consumer spending. The chart that really bears watching right now is the transportation index (IYT). It is still down more than 5 percent, despite a bounce the past two days. That index is a good indicator of how the economic engine is performing. It would be reassuring to see it catch up or begin to outperform the broader indexes.
All in all, we are seeing a mixed bag. I am glad to say we don’t need to predict or guess about the market’s next direction. We have a system and can be patient. We will respond when material changes dictate. How nice is that!
Year-to-date net-of-fees performance:
ALPHA INCOME: +3.41%
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.
By using this website and or blog, or making a purchase, user agrees as follows:
All written content on http://cabanaportfolio.com website (the “Website”) is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by CABANA, LLC (d/b/a “Cabana Asset Management”), Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.
The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.
Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.
Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana Asset management, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys’ fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.
Cabana Asset Management (“CAM”) is a U.S. Securities and Exchange Commission (SEC) Registered Investment Advisor (RIA) with headquarters in Fayetteville, AR. CAM is in compliance with the current registration and/or notice filing requirements imposed upon SEC registered investment advisors by those states in which CAM maintains clients. CAM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Further written disclosure information contained in SEC form ADV Part II, including registration status, fees, and services, is available upon written request.
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.