My Vocational Moment

Last Friday I was given the opportunity to do the “vocational moment” at my Rotary Club. The purpose of the vocational moment is to briefly inform or educate the rest of the club about an issue related to your employment. I decided to fully explain the European sovereign debt crisis in under three minutes. I…

Crossing a Line in the Sand

The S&P 500 Index has flirted with crossing below 1100 three times since early August. The market has been bouncing around since August 9th, when it first traded to an intraday low of 1101. It rallied to a high price of 1230 on August 31 and exhibited a record breaking amount of volatility over the…

The Answer to the Question…

A couple weeks ago, I posed a question in my blog post, “Asking the Wrong Question?” Investors typically choose between two different philosophies of portfolio construction. One method is the traditional method of investing in markets, where you have years of data to rationalize investment decisions. By owning markets, you are saying that you are…

Gold is not a Religion

Based on copious amounts of anecdotal evidence, gold investors tend to be highly sensitive to criticism. The gold bugs would have you believe — and proclaim zealously — that the precious metal must be held in all portfolios to protect against everything wrong in the world… and how dare you say otherwise! There is too…

Our Increasing Conviction

Changing the asset allocation of Pinnacle portfolios is often the result of a change in our forecast for various market segments. Even saying the word, “forecast,” raises the specter of foolishly staring into a crystal ball, trying to predict the future. Because we are in the business of making accurate forecasts, we readily admit that…

Re-Testing 1100

The stock market hasn’t responded very well to the Fed’s latest stimulus attempt, to put it mildly. In case you hadn’t heard, the Fed announced the widely anticipated “Operation Twist” yesterday. The program involves selling $400 billion of shorter-term Treasuries that are currently in their portfolio, and using the proceeds to buy longer-dated bonds. The…

Dr. Copper

>It is bounce or bust time for Dr. Copper. We have written in the past that copper should be followed as a barometer of global growth. Therefore it is worrisome that the metal has underperformed this week as the equity market recorded five straight days of gains.