Employment: Good, But Not Great

Today the market seemed to be spooked by the latest payroll employment report. According to the Bureau of Labor Statistics (BLS), nonfarm payroll employment rose by 115,000 in April. The official expectation was for 160,000, although the whispered number was 125,000 to 150,000. What is most interesting is that in actuality, nonfarm payroll employment rose…

Apple Island

The NASDAQ 100 is dominated by Apple. At 18% of the index, the Apple earnings report last night had a huge effect on the chart. From the end of March through yesterday, the index fell from 2795 to 2625, driven largely by a 14% drop in Apple. But after the massive earnings number reported last…

The Good and Bad News About Global Diversification

Pinnacle managed accounts are globally diversified. Most investors readily acknowledge that diversification is a benefit in its own right, since it tends to reduce portfolio volatility and helps investors avoid large investment mistakes. Global diversification offers more of the same: By owning stocks in different countries, you presumably get to invest in equities that have…

Looking Ahead to the Second Quarter

Recently the Pinnacle investment team met to discuss the state of the world, the views of the independent analysts we follow, our market expectations, and what it all means to the asset allocation of Pinnacle portfolios. As always, it was a lively discussion that swung between business cycle dynamics, technical condition of markets, valuation, and…