The Week in Review: Performance updates from Cabana’s CEO – June 12, 2018
Market insight and a highlight of Cabana’s year-to-date performance:
Cabana’s seven portfolios range from “Conservative” to “Aggressive” and include an income strategy and an “Accumulator” portfolio. Performance is as of market close on June 11, 2018 and is presented net of maximum advisory fees and commissions.
All Cabana Portfolios were up for the week. Our Core Portfolios were up between +0.65% and +0.95%. The Alpha Income Portfolio was up +0.49%. All asset classes have benefited from the stabilization in interest rates and the corresponding moderation of the U.S. Dollar. Domestic equities have outperformed international stocks. Small and mid-cap stocks are outperforming large caps. Discretionary stocks have continued the tear that began three weeks ago, and technology stocks are being purchased on each pull-back. Consumer staples have finally started to catch-up after a month of underperformance. Interest rate sensitive assets like real estate, bonds and dividend payers have enjoyed the slowdown in interest rates. All in all, it is hard to be unhappy with the markets right now. While not exciting, the underlying technical improvement that we have recently noted rolls on. We will receive news from the Federal Reserve on interest rates tomorrow. It appears that another quarter point raise is in the cards. Absent something out of the ordinary from the Fed, the market is positioned to take the second raise this year in stride. Talk of trade tariffs and President Trump's meeting with North Korea are now in the rear-view mirror. We remain moderately bullish.
Year-to-date net-of-fees performance:
ALPHA INCOME: -0.48%
Performance is presented net of the maximum advisory fees and commissions (2%). Numbers indicated with (+) for positive return and (-) for negative return.
-G. Chadd Mason, CEO
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