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 June 5, 2017 and is presented net of advisory fees and commissions.
All Cabana portfolios were up last week – for the second week in a row. All portfolios were up just under +1.00%, except for the Income portfolio, which was up +0.47%.
I read this week that more than 90 percent of companies have now reported earnings and more than 75 percent have beat earnings estimates, while more than 60 percent beat sales numbers. These facts, more than anything, represent the basis for the equity returns seen thus far this year. Now the question is whether earnings growth going forward will justify continued price appreciation. I don’t know the answer and doubt anybody else does, despite what we hear and read. The good news is we don’t have to know – or even guess for that matter. We can simply watch the flow of money among asset classes and let the collective wisdom of millions and millions of investors provide the answer one step at a time. For now, all equity markets are churning at or near all-time highs. Corporate bonds and treasuries continue to hang on and have even moved up in price as yield and the dollar have pulled back. Copper and other industrial metals have remained flat, while gold has moved up. The net cause/result (they are one and the same) of this is almost palpable indecision on the part of investors across the spectrum. We will remain patient and be consoled in the fact that we are collecting dividends and interest while we wait to be shown the way.
Year-to-date net-of-fees performance:
ALPHA INCOME +3.80%
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.