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 November 13, 2017 and is presented net of maximum advisory fees and commissions.
Consistent with the broad US equity markets, all Cabana Portfolios were down slightly for the week. Returns ranged from -0.31% (Growth) to -0.69% (Balanced). Over the past week we have seen US equities rotate into a more defensive posture, resulting in out-performance by consumer staples, utilities, dividend payers and REITs. Interestingly, this has occurred in the face of rising interest rates. These sectors would normally be adversely impacted by the ten-year rate increasing. The dollar has also pulled back, which is unexpected in response to rates rising. Either the equity market has it wrong and we will see inflation show up to sustain the rising rates, or we will see weak inflation data and rates pull back. If the latter happens, all the interest-rate-sensitive sectors will benefit. We will see third quarter inflation numbers on Wednesday of this week. It is during times like this, when we have conflicting information and the future is unclear, that Cabana’s Portfolios can be reassuring. The Cabana Portfolios are broadly diversified across asset classes, and if or when something major occurs at a macro-economic level, Cabana’s algorithm seeks to pick it up and respond accordingly. Until then we will follow along, be patient and collect our dividends and bond interest.
Year-to-date net-of-fees performance:
ALPHA INCOME: +4.67%
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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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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