The Week in Review: Performance updates from Cabana’s CEO – June 26, 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 June 18, 2018 and is presented net of maximum advisory fees and commissions (2%).

All Cabana Portfolios were down for the week, consistent with the steep selloff in the broader markets. The higher beta portfolios were all down more than 2.00%. The Alpha Income Portfolio performed best and was only down 0.32%.

The trade tariff threats continue to pull equity markets lower around the world. The Dow is down almost 5.00% in ten trading days. The S&P 500 has not fared much better, but is holding at its 50-day moving average. The blue-chip Dow Jones Index has fallen all the way to its 200-day moving average. Foreign equity markets are in even worse technical condition. China is down 12.00% and emerging markets are down 8.00% over the past two weeks. Europe is also down 7.00%. Almost all equity markets are now under water for the year. The U.S. has held up better than the rest of the world, but the fact remains that the Dow is down 2.00%. The finance and tech heavy S&P 500 is clinging to gains of just over 1.00%. The Nasdaq, with its concentration of smaller companies and technology, has survived the best and is up 9.00%. Without the leadership at the Nasdaq this year, equity markets would be in a world of hurt. Bonds have not done any better due to rising rates during the first half of the year. U.S. Treasuries are down for the year, as are corporate grade bonds, real estate and gold. Commodities are still up but have pulled back 5.00% in the past month. If anyone is looking for a challenging investment climate, this is it.

Equity markets are at a critical juncture in my opinion. I believe one of two things is possible. The U.S. markets may bounce off key technical support and resume the uptrend that began at the end of May, thereby pulling international markets out of their current tailspin. This should result in at least one more leg up in this worn-out bull market during the last half of the year. Alternatively, they may break support and we head to the February lows and then some. I believe the Dow Index is the key. It is the most sensitive to the rising dollar and impact related to trade. We need it to hold its 200-day moving average now. If it falls, everything else is likely to follow. We remain moderately bullish until proven otherwise.

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

CONSERVATIVE: -0.34%

MODERATE: -1.24%

BALANCED: -1.52%

GROWTH: -1.63%

AGGRESSIVE: -1.24%

ALPHA INCOME: -0.48%

ACCUMULATOR: -0.38%

-G. Chadd Mason

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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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