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 8, 2018 and is presented net of maximum advisory fees and commissions.
We saw impressive returns in all of Cabana’s portfolios this week. Cabana’s Growth and Aggressive Portfolios were each up almost 3%. The Alpha Income also had positive returns despite a pop in interest rates.
I would like to start by pointing out the obvious and that is, markets don’t go up (or down) in a straight line. The equity markets are overbought and due for a sharp correction. As our clients know, we are not in the business of investing money based on predictions. Markets can stay overbought for long periods of time. We are likewise not investing to catch tops or bottoms of markets. We are in this business for the long haul. We will stay invested based upon what we see fundamentally and technically in front of us. We have seen broad-based buying across all equity sectors to start the year. Higher beta assets have outperformed. The ten-year yield is rising, but still at historic lows. In general, these are good things and, in my opinion, reflect demand growth accompanied by earnings growth worldwide. Earnings drive prices. Can this market move higher over the next six months or year? Absolutely. If earnings continue to increase, prices will respond in kind. We remain bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: +0.78%
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.
Cabana LLC manages assets on multiple custodial platforms. Performance results may vary based upon differences in associated costs and asset availability within the Cabana Model.