Cabana’s seven portfolios range from “Conservative” to “Aggressive” and include an income strategy and an “Accumulator” portfolio. Performance below is as of market close on July 9, 2018 and is presented net of maximum advisory fees and commissions (2%).
All Cabana Portfolios were up for the week as major markets bounced from oversold conditions. Most importantly, both the Dow and S&P 500 have regained their 50-day moving averages, thereby withstanding another threat of technical breakdown. Emerging markets also had a big week as the U.S. dollar pulled back, trade fears abated and buyers stepped in to take advantage of a big value opportunity following price drops of 20% or more in some markets. Bond yields have risen in response to improving equity conditions, but the move is contained. Interest rate sensitive assets like bonds, real estate and dividend payers have under-performed other assets, but were still positive for the week. All in all, prices moved up across all assets (other than the U.S. dollar). Our higher beta portfolios were up more than 2%, while the Cabana Conservative Portfolio was up 1.36% and the Alpha Income Portfolio brought up the rear at +1.09%.
I commented last week that fundamentals remained strong going into earnings season and that if we could move past the barrage of threats among our trading partners, as well as needless “flame fanning”, we stand a real chance of a decent second half of the year. We certainly have survived a number of setbacks to investors during the first half of 2018. It seems investors would likely take advantage of some period of quiet and begin to invest based on fundamentals. If that is the case, I believe the next six months will be more fun than the previous six. We remain moderately bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: +0.45%
-G. Chadd Mason
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