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 May 26, 2017 and is presented net of advisory fees and commissions.
All Cabana portfolios were in the black for the week. The Conservative Portfolio led the way with a gain of 0.75% and the Alpha Income trailed with a gain of 0.17%. We continue to see equity markets drift higher along with corporate bonds, treasuries and high yield. The dollar has dropped in response to lower rates. Interestingly, real estate and energy have not caught a bid despite rates moving lower and the pullback in the dollar. It is concerning that energy continues to underperform even with a weaker dollar. Commodities, as a whole, also remain uninspired. We would expect a positive response by energy and commodities to the earnings growth story and no dollar headwinds. With this said, the transportation index has pushed forward and we have a new high as of Friday in the S&P 500. I think these inconsistencies reflect indecision and a reluctance to commit one way or another. We mentioned a couple of weeks ago that indecision can result in correlation among asset classes in sustained bull markets and inertia moves things in the direction of the underlying trend. Something will ultimately give and investors may jump on equities with conviction or the hopes of growth could be dashed and we would see pronounced selling. In the meantime we will stay put and take it as it comes. We remain bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME +3.32%
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.
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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.
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