What I Like Most About This Rally

Back in the second quarter our theme was “consolidation and continuation”, meaning we were looking for a market correction that would lead into a continuation of the bull market (See April 20, 2012 “Looking Ahead to Second Quarter”).   Well, the correction we were looking for clearly unfolded, taking the S&P 500 down about 10% between…

“Whatever It Takes”

As recently as this week Spanish bond yields had been roiling the markets as they crossed the 7% threshold that is considered the point of no return. With system risk rising anew, the onus was on policy makers to get moving in another attempt to bring down spreads and calm global markets. In the last…

One Step Forward, Two Steps Back

Last Friday, after the 19th European emergency summit, markets rallied on the idea that the 19th time might be the charm, and Europe might finally be awakening to the gravity of the current situation. Spreads on Spanish and Italian bonds came in handily, and equity markets around the globe rallied furiously after European leaders pulled…

The Questions We Face

Markets are down a healthy 10%, which from a price perspective is well within the range of what we were looking for when we started the quarter with the theme of consolidation and continuation (the bull will stay intact and rise once the correction has run its course). The question of whether the correction will…

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…