Oil Heats Up as Reactors Cool Down

There’s been a nice rally since the markets appeared to hit a short term selling climax last week on fears of a potential nuclear reactor meltdown in Japan, but we are quickly approaching an important inflection point in this bounce. The S&P 500 has closed in on its 50-day moving average, and many markets have…

The Natural Disaster “Playbook”

Last week I found myself discussing the Natural Disaster Playbook with several clients. This “playbook” is followed by institutional investors with little variation and is employed during unexpected or exogenous events like earthquakes, floods, tsunamis, pandemics, etc. It is also often used for non-natural disasters such as terrorist attacks, assassinations, and any other event that…

Growth Remains on Upswing

Investors have grown increasingly skittish in recent weeks, which is understandable given the enormity of recent events in the world. Lost amid all the concern regarding exogenous shocks seems to be that the U.S. economy remains on a solid growth trajectory. The latest evidence of this was found in the updates of two leading economic…

Buying a (Big) Dip

The old adage passed from generation to generation in the investment world is to “buy when there’s blood in the streets.” This simple sentence perfectly sums up the investment philosophy known as contrarianism, which means doing the exact opposite of the herd. In other words, buy the dip, and the bigger the dip, the bigger…

Attempting to Harness the Negative Energy

These are scary days out here in investing land. Between geopolitical concerns in the Middle East and the nuclear scare coming out of Japan, there has been a rapid re-pricing of risk occurring in financial markets. Now I don’t want to downplay the human disaster that is occurring in Japan, and my heart goes out…

Inside the Investment Committee Rocks

One of the highlights of the year for the Pinnacle Investment Team is the annual Inside the Investment Committee presentation for Pinnacle clients. The objective of the presentation is to give our clients a feel for the kind of presentation that the investment team (our Pinnacle investment analysts) puts on for the investment committee (Pinnacle…

Oil Falls, So Do Stocks

Today was a tough day for anyone holding risk assets. The combination of more rate increases in emerging markets, fears of Chinese growth faltering, Portugal’s debt getting downgraded, and more Middle East tensions had the markets rioting most of the day.

Dr. Copper

The commodity with a PhD in economics, Copper, is showing signs of slowing here. It is viewed as a fairly reliable leading economic indicator because so much of it is used in the production of industrial goods. Copper is used specifically in wiring, heating, plumbing, and many electronic goods. When there is less demand in…