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 22, 2018 and is presented net of maximum advisory fees and commissions.
All Cabana Portfolios were up for the third straight week of 2018. The Aggressive Portfolio led the way at +1.76%. All other portfolios were up more than 1%, except for the Alpha Income Portfolio, which was up +0.54%.
Great numbers out of the IMF, predicting robust world economic growth, coupled with rising earnings here in the U.S., propelled equity markets higher. The ten-year yield bounced above 2.62 where it found resistance. Higher yields reflect increasing demand premium by bond investors. This is consistent with market participants that see growth in the world economy and require more in interest from borrowers to tie up their money. I discussed this in our blog post on the yield curve back in November, and it is worth re-visiting for those who are interested in the underlying cause and effect. The summary version is that it is good to see longer term rates rise in response to increases in short term rates by the Federal Reserve. This evidences confidence by investors, while rates all across the yield curve remain at historically low levels. Notwithstanding the need for a pull-back from overbought conditions, markets can go higher if earnings justify it. See My January 9, 2018 market recap. We remain bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: +1.76%
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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