The Week in Review: Performance updates from Cabana’s CEO – July 17, 2018

2 years ago

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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 16, 2018 and is presented net of maximum advisory fees and commissions (2%).

Cabana’s Portfolios were mixed for the week. The Alpha Income Portfolio led the way with a gain of 0.19%. The Moderate and Growth Portfolios also finished positive this week. The remaining portfolios were down slightly.

U.S. equity markets regained and held important technical support in the face of almost constant headwinds in the form of political upheaval and the very real possibility of a global trade war. I will not belabor the point, but we are living in very strange times politically – especially when it comes to foreign policy. Our stock market’s ability to move forward is a real testament to the ultimate importance of earnings. I have stated many times that I believe earnings are the real driver of stock prices and ultimately the attractiveness of one asset class relative to another. The difficulty of course, is determining what issues (such as those pointed out above) will impact earnings in the future. Markets are forward-looking and constantly weigh and assess information to determine if things will get better or worse. Fortunately for us, we can let the collective wisdom of millions of smart investors throughout the world do the work for us. We need to simply monitor the price of particular assets to tell us if earnings are likely to be affected. The price of an asset will generally move before there is a change in earnings. This data, in conjunction with monitoring earnings and interest rates, gives us a fair idea of where we are in the economic cycle. This is what we attempt to do here at Cabana. If we can broadly define where we are in the cycle, we should be able to determine which types of investments are the most attractive. For now, equities still look more attractive than bonds. Commodities are being affected and prices held in-check by weakness in emerging markets – and China in particular. Real estate continues to do relatively well, even with the prospect of rising interest rates. This is the result of strong consumer demand for housing. The Dollar is strong and reflects the continued outperformance of the U.S. economy relative to the rest of the world. While the strong Dollar can make it difficult for certain assets (commodities, foreign equities and multi-national US companies), there is no denying that the U.S. is leading right now. We remain moderately bullish.

Year-to-date net-of-fees performance:

CONSERVATIVE: +0.76%

MODERATE: +0.70%

BALANCED: +0.61%

GROWTH: +0.31%

AGGRESSIVE: +0.56%

ALPHA INCOME: +0.64%

ACCUMULATOR: +0.93%

 

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Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

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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.

Disclaimers

Cabana LLC (dba “Cabana Asset Management” and “Cabana Retirement Solutions”), is an SEC registered investment adviser with offices in Arkansas, Texas and Colorado. Cabana only transacts business in states where it is properly registered or is exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Additional information regarding Cabana, including its fees, can be found in Cabana’s Form ADV, Part 2. A copy of which is available upon request or online at https://www.adviserinfo.sec.gov/.

By using this website the user agrees as follows:

All written content on www.thecabanagroup.com website (the "Website") is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by Cabana, LLC, Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with a financial advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a financial advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys' fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.

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