The Week in Review: Performance updates from Cabana’s CEO – August 7, 2018
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 August 6, 2018 and is presented net of maximum advisory fees and commissions (2%).
All Cabana Core Portfolios were up for the week. Our lower beta portfolios led the way, as international exposure continues to weigh on the other portfolios. The Alpha Income Portfolio was up 0.90% while the Accumulator Portfolio brought up the rear and was up 0.22%.
Domestic equity markets had a good week as strong earnings overshadowed the ongoing talk of trade war with our European partners and China. Foreign markets have not done so well and continue to sell off as their currencies are losing ground to the U.S. dollar. While a strong dollar represents the relative strength of the US economy, it is problematic for companies that export abroad – and especially difficult for international economies that are tied to commodities. All of this is very much related to the potential impacts of trade tariffs and is compounded by the fact that the U.S. is growing faster than other developed nations. Ultimately, the fact remains that the world economy is interconnected and long term growth here will require cooperation with and participation by other economies. In my opinion, we need other countries’ equity markets to catch up for our market to continue to move forward. Do not forget – it is earnings that drive price and we need the whole world participating to maximize earnings.
Now for some good news. The S&P 500 is poised to test 2018’s January highs. This would formally provide a resumption of the bull market in stocks. At the same time, Dow Industrial and Transport indexes are breaking out to new post-correction highs. We have mentioned this “Dow Theory” indicator several times and it is now confirmed. On Tuesday of this week, there was a big bounce in China and a bounce in European stocks. While there was similar buying two weeks ago and it did not last, I am hopeful that all the pundits now suggesting the demise of those markets is an indicator that the selling is overdone. I am a big believer that if we hear about it on every channel the move is already over. We remain moderately bullish. Our COO Chris Carns likes to make fun of me and suggests that we change our bullish position from moderately bullish to “sheepishly bullish”. He is a funny guy, but I am sticking with moderately bullish for now!
Year-to-date net-of-fees performance:
ALPHA INCOME: +1.62%
By using this website and or blog, or making a purchase, user agrees as follows:
All written content on https://cabanaportfolio.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 (d/b/a “Cabana Asset Management”), 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 an 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 professional 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 Asset management, 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.
Cabana Asset Management (“CAM”) is a U.S. Securities and Exchange Commission (SEC) Registered Investment Advisor (RIA) with headquarters in Fayetteville, AR. CAM is in compliance with the current registration and/or notice filing requirements imposed upon SEC registered investment advisors by those states in which CAM maintains clients. CAM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Further written disclosure information contained in SEC form ADV Part II, including registration status, fees, and services, is available upon written request.
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.
Cabana LLC manages assets on multiple custodial platforms. Performance results may vary based upon differences in associated costs and asset availability within the Cabana Model.
Detailed information as to how the returns are calculated can be obtained online from the following link https://cabanaportfolio.com/wp-content/uploads/2018/07/ Performance-Reporting-Methodology_July-2018.pdf.