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 December 11, 2017 and is presented net of maximum advisory fees and commissions.
All Cabana Portfolios were up over the past week. The Balanced led the way and was up +0.73%, followed by Moderate (+ 0.71%), Aggressive (+ .60%), Growth (+0.59%), Conservative (+0.56%) and Alpha Income (+0.13%).
This week we saw continued sector rotation within the S&P 500, as a result of profit taking and a bounce in the US dollar. It is healthy when money rotates within equity sectors in search of value. There is certainly opportunity to do that at years’ end when some sectors like technology are up more than 30 percent. The benefactors of this rotation have been financials, healthcare, industrials and consumer staples. The financial sector has been further boosted by an uptick in interest rates (which helped the dollar). In turn, we have seen a pullback in emerging markets, which are especially sensitive to a strengthening in our currency. Emerging markets, including China, are down more than 5 percent over the past week. Today we saw a PPI inflation number of more than 3 percent, which should provide the Federal Reserve with solid ground in raising short-term rates again this week. Bond markets have remained solid. Interestingly, we saw utilities and real estate move in opposite direction today, with utilities dropping and real estate rising. Both are sensitive to rising rates. This leads me to believe that the selloff in utilities reflects money moving from a defensive position to a more aggressive position, rather than any real concern over the negative effects of rising rates on the economy. To the contrary, the rising rates appear to suggest growth. We remain bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: +6.16%
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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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.
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