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 June 18, 2018 and is presented net of maximum advisory fees and commissions (2%). Numbers indicated with (+) for positive return and (-) for negative return.
Cabana’s Core Portfolios were all down for the week, ranging from -0.38% (Conservative) to -0.80% (Growth). The Alpha Income Portfolio was up +0.30%.
Equity markets worldwide have pulled back in response to President Trump’s decision to apply tariffs to another $200 billion worth of Chinese goods. China has responded in kind, setting the stage for a trade war, which could impact GDP and erase any growth obtained by the passage of tax reform. The tariff issue is quite complicated and most experts believe the current actions are likely to do more harm than good. Investors in stocks apparently feel the same way, which explains why prices have dropped across the board. Foreign equities, industrial stocks and large cap stocks are bearing the brunt of this. Bond yields have also pulled back, which has boosted U.S. Treasuries. Corporate bonds have remained essentially flat. The selloff feels orderly at this point and markets remain above key technical levels. With that said, market participants would likely appreciate some indication of a resolution to the ongoing economic threats among trade partners. As we pointed out a couple of weeks ago, the situation is fluid and continues to cause volatility in markets across the world. It seems that every time the clouds begin to part, we are confronted with news that knocks us back. While frustrating, we will stick to our discipline and focus on the things that matter to us. If these trade wars begin to affect corporate earnings, we will respond accordingly. For now, we remain moderately bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: -0.19%
-G. Chadd Mason
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