The Week in Review: Performance updates from Cabana’s CEO – October 3, 2017  

6 years ago

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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 October 2, 2017 and is presented net of advisory fees and commissions.

All Cabana Portfolios were up for the week. The Aggressive and Growth portfolios were up more than +1%.

We have seen renewed buying in cyclicals as the growth story has been revived. I pointed out last week that the transportation index (IYT) has taken off and has not only caught up with the broader indexes, but is now outperforming. This could be correlated with prospects for growth across the globe. I suspect some of this may be due to hopes of tax reform. It is commonly thought that markets have a funny way of quickly figuring out what is real and what is not. If you believe that to be true, there is growth in our future. Consistent with this theory, US rates have started to rise and bonds have pulled back. The US dollar has bounced as well over the past two weeks. Energy has hung in despite the rising dollar, which may also be attributed to economic growth. Safe haven assets like gold and utilities have pulled back as would be expected. I mentioned the more than three percent pullback in China last week and questioned whether it was due to healthy profit taking or something more serious. China has made that three percent back, and more, in the past week. In fact, it is up more than two percent today. Despite the horrible tragedies seen here at home and abroad this year, the market rolls on. Let’s all take a minute to pause and think of the victims in Las Vegas and their loved ones – to them, I suspect this is all pretty unimportant.

Year-to-date net-of-fees performance:
CONSERVATIVE: +9.81%
MODERATE: +12.75%
BALANCED: +15.20%
GROWTH: +12.64%
AGGRESSIVE: +12.62%
ALPHA INCOME: +4.88%

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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Disclaimers

January 17, 2024

This material is prepared by Cabana LLC, dba Cabana Asset Management and/or its affiliates (together “Cabana”) for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. This material may only be distributed in its original format and may not be altered or reproduced without the prior written consent of CabanaThe opinions expressed reflect the judgement of the author, are as of the date of its publication and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Cabana to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Cabana, its officers, employees or agents.  

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Commonly used index/benchmark definitions:  

All indices and categories are unmanaged and an individual cannot invest directly in an index or category. Index returns do not include fees or expenses. Benchmark indices will likely materially differ from Cabana’s portfolio strategies. Detailed information as to how the returns are calculated can be obtained online from the following link: https://thecabanagroup.com/disclaimers/performance-reporting-methodology/. 

Morningstar’s Moderate Target Risk index  follows a moderate equity risk preference and is based on well-established asset allocation methodology from Ibbotson Associates, a Morningstar company.  

Morningstar’s Tactical Allocation category includes portfolios that seek to provide capital appreciation and income by actively shifting allocations across investments. These portfolios have material shifts across equity regions, and bond sectors on a frequent basis. 

The S&P 500 Index is a market-capitalization weighted stock market index of 500 widely held large-cap stocks often used as a proxy for the U.S. stock market.  

The Russell 2000 and 3000 indices are market-capitalization weighted stock market indices that include, respectively, 2000 and 3000 of the most widely-held stocks and are often used as proxies for the U.S. stock market. 

The Nasdaq Composite Index is a market-weight capitalization index that covers more than 3,000 stocks listed on the Nasdaq Stock Market. What is the Nasdaq Composite, and What Companies are in It? | Nasdaq