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 29, 2018 and is presented net of maximum advisory fees and commissions.
All of Cabana’s core portfolios were up for the fourth straight week. The Conservative Portfolio led the way and was up +0.96%. The Moderate Portfolio was up +0.73%, while the Balanced, Growth and Aggressive Portfolios were up almost +0.50%.
Earnings continued to exceed expectations, thereby fueling more equity buying and leaving stock indexes on Friday at all-time highs and with the largest gains for the month of January in thirty years. Clearly, this stock market is severely overbought and in desperate need of a pullback. We got just that on Monday and have seen more selling today. The excuse is a jump in bond yields. The Ten Year Bond Yield broke through resistance at 2.62 and moved all the way to 2.70. The next stop is 2.90, which we have not seen since 2013. I have discussed interest rates and the yield curve many times over past months and will not repeat all of my thoughts again here. I do think rising longer term yields will ultimately prove healthy and are evidence that we may finally be seeing some demand side growth worldwide. During the interim, I believe rising rates will justify a pullback in equities, thereby allowing new buyers to step in and move the market higher. We will likely see convergence of assets while this plays out. This should not be surprising since we saw the same thing throughout 2017, on the way up. We will stay disciplined and invest based upon objective macro-economic data. We do not try and catch tops or bottoms, but are long term investors with a system. We remain bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: +1.67%
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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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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