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 on January 15, 2018 and is presented net of maximum advisory fees and commissions.
All the Cabana Portfolios were impressively positive for the second week in a row. The Moderate Portfolio led the way at +1.41%, followed by Conservative at +1.21%.
In the new year, we have clearly seen some money moving into equities, and it is not the result of money fleeing bonds (the usual suspects) or commodities. Rather, it appears to be the result of healthy sector rotation to begin the new year. As I pointed out several times last year, sector rotation, as investors seek value, is healthy within a sustained bull market. Notably, money has come out of real estate over the past few weeks. The strong buying in equities may also be the result of long term market skeptics unable to stand the pain any longer and are getting off the sidelines. Any way you slice it, this has been an exceptionally strong start to the year. For those who are readers of the Stock Traders Almanac, a positive January for the S&P 500 has resulted in an up year 87% of the time. While such historical statistics are fun to think about, I believe a positive year is the result of positive corporate earnings, resulting from favorable business conditions. The collective intelligence of the world’s investors is a powerful thing. The “January Barometer” might represent investors having a pretty good feel for the year ahead.
While all this is well and good, we are long overdue for a pull-back and need one for a healthy market to continue over time. We saw some selling today after the open and that is a good thing. We will continue to take it one day and one week at a time, investing based upon the data in front of us. We remain bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: +0.97%
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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