Trend…Counter Trend

I am reminded of the classic Saturday Night Live skits where Dan Aykroyd and Jane Curtain faced off in their news update, Point/Counterpoint. Jane would take one side of an issue and then Dan would start off his comments with the famous words, “Jane, you ignorant slut.” Delivering all of this with a straight face…

Are We in a New Secular Bull Market?

I just read the February letter from Tony Boeckh, author of The Great Reflation, and one of our highly regarded independent analysts. The title of his letter, “Are Equities Too Expensive for a New Secular Bull Market?” is provocative for those who believe we are still mired in a secular bear market. Secular bears look…

Tech Stocks on Fire

It’s not exactly a replay of the late 1990s, but Technology stocks have been rallying hard of late. Tech is among the leading sectors of the S&P 500 so far this year (measured using sector ETF performance), and a few Tech sub-industries are roaring.

30 Year Treasury Bonds

The 30 year US Treasury bond has had a rough couple of months. The yield on the 30 year US Treasury bond was 3.45% on August 25th and has since risen to a yield of 4.73%, which means that the price has fallen over 18% in roughly 6 months as price and yield move inversely…

Submerging Markets

One of the best known investment themes is that the growth of emerging markets like China, India, Brazil, and Russia will support global growth and actually contribute to the earnings prospects of U.S. corporations, which will help to sustain the current bull market. The idea that these emerging economies can sustain their economic growth at…

Schwab Investment Outlook

On Wednesday, Sean and I drove to Baltimore to attend the 2011 Investment Outlook hosted by Charles Schwab. The all-day conference consisted of probably something like 75 to 100 other investment advisors, and the agenda consisted of some interesting and timely topics. Most of the investment experts that they brought in as presenters were very…

Trading Bands

It is time for the semi-annual trading procedures post. To most this is rather uninteresting reading (only surpassed by Ken’s Modern Portfolio Theory rants) but we feel it is important to continually educate you on the inner workings of Pinnacle. To assist with trading, we invested in iRebal which is a software program designed to…

Sell the News?

Today brought the release of 4th quarter GDP, which came in at 3.2%. The headline number was below expectations for 3.5% growth, but let’s not get crazy here, as this number was pretty close, and will be revised two more times before it becomes official. Within the report, personal consumption was a notable positive, and…