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 February 26, 2018 and is presented net of maximum advisory fees and commissions.
Performance in all Cabana Portfolios was positive this week – for the second straight week. Higher beta portfolios like the Cabana Growth and Aggressive outperformed and were up almost +1.5%. This positive performance coincides with the strong bounce in equities since the sell-off earlier this month. All asset classes have recovered between 50% and 75% of their losses. As a result, all of Cabana’s Core Portfolios are positive for the year. The Alpha Income Portfolio is down slightly, as it has mainly stayed out of the fray, as it should per its design.
All assets have been impacted by the reset, caused by stronger demand growth supporting normalization of Fed policy. Rising rates may necessarily result in re-calibration of the risk/reward paradigm. As stated many times over the past weeks, I believe this is normal and healthy in a free market economy. What makes this current situation so volatile, and sometimes scary, is that it has been a decade since markets were allowed to stand on their own two feet. My past analogy, noting that a kid without his training wheels is going to be wobbly the first time out, is appropriate. We could see some fits and starts while markets seek to price assets relative to one another. The facts remain that the domestic and international economies are strong, the yield curve is positive and consumer confidence is at an all-time high. This is all very good news and interest rates are simply reflecting that. We remain modestly bullish following a defensive reallocation and will respond accordingly should markets continue higher.
Year-to-date net-of-fees performance:
ALPHA INCOME: -0.43%
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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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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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.
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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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