Successful investing is all about balancing risk with return. The return part seems easy enough… we all want to see the value of our investments go up. However, investment risk is a bit more complicated than you might think. Let’s take a look at what investors mean by risk, and how you should consider it…Details
Dave has a problem: He has his eyes on a beautiful 1978 Ford Pinto — barely used. It’s a bargain for $24,000. In a world without inflation, Dave could simply save $8,000 a year for three years and he would have exactly what he needs to buy his dream car. But what happens when we…Details
Every successful investor must begin by understanding the difference between saving, investing, and speculating. If you get those confused, you run the risk of losing a lot of money. Let’s start with saving… Saving can be defined as the process of setting money aside in order to make a purchase a short time in the…Details
When it comes to giving financial guidance to couples, advisors encounter the same dynamic again and again: One spouse is almost always the champion of the family’s finances. This person follows the markets, reads the Wall Street Journal, and has either invested the family’s funds or has worked directly with an advisor. This video series…Details
The second quarter started in somewhat choppy fashion as small cap and other high flying momentum stocks continued to face pressure as investors decided to shed stocks with swollen valuation multiples. The major averages fared better than their risky counterparts, and after a brief dip stocks began their ascent towards record breaking highs on the back on improving economic data, decent earnings growth, and continuing liquidity support from global central banks.
Meanwhile commodity markets appeared to work off some of their overbought readings from earlier in the year as they treaded mostly sideways during the quarter. Within fixed income, the bond market also fared well as investors continued to flock towards anything with a yield, foreign bond markets bubbled, and a number of technical factors came together to keep bond investors satisfied despite meager nominal yields.Details
NOTE: There is a 100% probability that bull markets will be followed by bear markets. This article is not a forecast about imminent market behavior. For our latest views on markets, clients should read our market review. Financial fire drills are all about testing your emotional response to a bear market, which you should be doing all the time. (And it’s not a bad idea to check your emotional reaction to bull markets, as well.)
When I was a kid, my family lived in a two-story colonial in South Jersey. Once each year, to the great excitement of all concerned, my parents had my brother, sister, and me conduct a fire drill. We got to climb out of our bedroom window onto the roof of the garage, and then down from there.
Our house never suffered a serious fire, and we never had to make a rooftop escape, but my parents were still glad that we’d practiced what we had to do, just in case. It was a very good idea.Details
Pinnacle’s Chief Investment Officer, Rick Vollaro, explains why the investment team has developed a new view in response to economic developments.
Governor Martin O’Malley recently signed a new law that will reduce the sting of estate taxes over the next several years for Maryland residents. So how does the Maryland tax compare with the federal version? As defined by the IRS, “The Estate Tax is a tax on your right to transfer property at your death.” The federal government imposes a tax on taxable estates in excess of $5.34 million (the individual federal exemption amount, which increases for inflation annually). Maryland currently imposes an estate tax on taxable estates in excess of $1 million (the state exemption amount).Details
If you’re a lover of the outdoors and thinking about where you want to live in your retirement, you probably already have some candidates. But have you considered the financial ramifications of living in those areas? While financial implications should not necessarily be your primary focus, you should consider such things as taxes and cost of living when making your decision.Details
Is the Market heading for a Pause? Pinnacle’s Chief Investment Officer, Rick Vollaro, explains where the market is heading and how the Investment Team plans to respond.