Institutional - Commentary & Outlook
December 11, 2024
Stocks continued to roll on in November, posting another strong month in an already impressive 2024. All of the major stock market indexes – the Standard & Poors’ 500, the Dow Jones Industrials, the NASDAQ Composite, as well as the mid cap and small cap indexes – ran to record highs during the month, in response to continued resilient economic data and moderate inflation, an accommodative monetary stance by the Federal Reserve, and of course, the Trump victory and Republican sweep.
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December 11, 2024
Throughout the summer, the market focused on the outlook for lower in- terest rates which lifted our real estate and financial sector holdings. Investor focus has shifted to data centers and the energy demand required for the build out of that sector. Our portfolio has several positions that fit this theme (Solaris Oilfield Infrastructure, Argan, BWX Technologies, and Vicor), and these stocks have become more popular.
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November 25, 2024
Our Portfolio Manager, Ryan Byrne, delves into the growing appeal of sports investments in Chief Investment Officer’s latest feature, Beyond the Game. From owning a stake in professional teams to exploring new avenues for growth, this article highlights why sports investing continues to gain traction.
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November 19, 2024
Unifi, Inc., based in Greensboro, North Carolina, manufactures synthetic and recycled textiles assembled from polyester, nylon, and plastic. The company’s products are sold to makers of yarn and weavers who produce fabric for the apparel, home furnishings, and industrial markets. Unifi’s growth driver is its sustainability-oriented REPREVE® brand. REPREVE produces fibers from recycled materials, in essence turning plastic bottles into sustainable yarn.
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November 12, 2024
October, typically the stock market’s most volatile month, was a weak one for the financial markets. Both stock and bond investments generated negative returns. This occurred despite two positive developments – moderate inflation data that moved closer to the Fed’s 2% target and surprisingly favorable economic data. The upbeat economic activity, including strength in jobs, consumer spending and overall GDP, led investors to conclude that, although recent economic data had fluctuated in both directions, any remaining recessionary concerns should probably be put to rest.
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November 12, 2024
The US stock market saw divergent performance in October, ending the month with modest declines. The Russell 2000 experienced more pronounced losses, exceeding 1% for the month. Sector performance also exhibited significant divergence: Financials, Communication Services, and Energy were the only sectors that posted gains during the month; Health Care, Consumer Staples, and Materials experienced notable declines, each falling by at least 3%.
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Individual - Commentary & Outlook
November 14, 2024
With Donald Trump’s recent victory in the presidential election, financial markets are poised for potential shifts across various sectors. Historically, markets tend to stabilize when political outcomes are clear, and now that the election is settled, initial uncertainty has eased. However, as we assess the implications of a Trump presidency, investors are watching closely for policy changes that could affect different asset classes.
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December 2, 2024
September was volatile heading into the Federal Reserve interest rate decision but ended the month about flat. The net result was an overall strong quarter for small capitalization stocks. Currently, the Federal Reserve has begun cutting interest rates, job numbers are holding up (but not too much), and investors are getting “all-in” on an economic soft-landing economic projection. As of mid-October, it is hard to find a bearish strategist on Wall Street.
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November 13, 2024
At Pinnacle Associates, we understand that addressing health-related financial issues requires both sensitivity and a proactive approach. In this Fall edition of our Financial Planning newsletter, we explore key areas that will help you navigate the financial complexities as you approach retirement. Inside this guide, you’ll discover important insights on maximizing Social Security benefits, managing portfolio allocations, making the most of Roth conversions, and understanding Medicare. We also address the potential impacts of the Tax Cuts and Jobs Act’s impending sunset and offer personalized strategies for safeguarding your investments as you move into this next chapter of life.
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October 25, 2024
Often dismissed as mere vanity assets for the affluent, sports-related investments have quietly outperformed most asset classes over the past two decades. The evolving media landscape and fervent fan loyalty have unlocked profitable opportunities, transforming sports into a dynamic investment frontier. From a financial perspective, factors such as low leverage, improving margins, stable and predictable cash flows, and rising asset values have cemented sports as a viable and attractive investment avenue. We believe the commercialization of sports is still just warming up.
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Individual - Commentary & Outlook
October 18, 2024
U.S. equity markets saw broad gains in Q3, with all major indices posting positive returns. Notably, market leadership, which had been concentrated in large-cap tech, broadened as other sectors and asset classes joined the fun. This is reflected in the impressive performance of the equal-weighted S&P 500, up 9.1% for the quarter, surpassing the market-cap weighted S&P 500’s gain of 5.53%. Small cap companies also advanced, with the Russell 2000 rising 8.9%. The top-performing industries included asset managers, utilities, building products, REITs, property and casualty insurers, credit cards, and cruise lines. On the flip side, energy, semiconductors, software, money-center banks, department stores, steel, and autos lagged behind.
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October 16, 2024
Stocks continued to advance in Q3, with strength broadening out and away from the almighty Magnificent 7. Key to the market breadth was growing expectations during the quarter for a Fed rate cut, which was ultimately confirmed when the Fed reduced rates by 50 basis points at its September meeting. The positive reaction to the long-awaited ease in rates trumped a negative turn in Mideast tensions, as well as continued uncertainty around the presidential election.
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October 22, 2024
As we at Pinnacle Associates celebrate our 40th anniversary, we proudly reflect on the foundation of excellence we’ve built and the opportunities that lie ahead. Our investor commitment is unwavering, supported by an experienced and stable investment team and a time-tested investment approach that has successfully navigated many different market cycles. While the past year has been challenging, we feel strongly that we are poised to rebound and deliver the level of outperformance we have accomplished in the past, making this an ideal time to invest in our Small/Mid Growth (SMID) portfolio.
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October 10, 2024
Similar to August, September started off on a weak note and subsequently rallied back to post solid monthly gains. During the first week of a seasonally difficult month, stocks fell nearly 5% on concerns about the health of the US economy after another weak employment report and poor manufacturing data. But stocks subsequently rebounded on improving economic indicators, positive inflation readings and the increasing possibility that the Federal Reserve Board might act more aggressively to cut rates at its upcoming meeting.
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Individual - Commentary & Outlook
September 24, 2024
Last week’s decision by the Federal Reserve to cut the federal funds rate by 50 basis points marks a significant moment in the central banks’ continual effort to manage the U.S. economy’s trajectory. This move reduced the benchmark rate to a range between 4.75% and 5%, positioning the Fed into a new phase of monetary policy. While rate cuts typically aim to stimulate growth in times of crisis, we caution against reading into the magnitude of this cut and whether it reflects concerns that go beyond merely fine-tuning inflation control.
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September 12, 2024
August started off in tumultuous fashion, continuing a volatile summer season after a very eventful July. In July, we saw dramatic developments on the political, financial and geopolitical fronts, and investors were hoping for calm markets in August as they headed to the beach. But it was not to be.
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September 12, 2024
Small capitalization stocks ended the summer on a weak note as August gave back some of the July gains. The Federal Reserve has moderated its aggressive interest rate stance, but investors are still cautious about inflation and the pace of future interest rate cuts. In addition, weaker economic data raised investor concerns about a potential economic soft landing.
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August 19, 2024
Since the beginning of the year, we have been expecting (hoping) for a rotation from momentum to value stocks, and July delivered the reversion to the mean trade with a bang. The Pinnacle Small Cap Value Portfolio composite came in above the Russell 2000 Value and the Russell 2000 Indices for the month.
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August 15, 2024
July was a very eventful month, with dramatic and unprecedented developments on the US political front, a potential sea change in the financial markets, intensifying geopolitical tensions and the continued obsession with the Federal Reserve Board’s next moves.
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July 24, 2024
The unprecedented nature of such a late change in Presidential candidate from one of the major parties – along with the high probability of more twists and turns ahead – will likely contribute to an increase in volatility, which has been quite low for a prolonged period.
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July 23, 2024
The US equity market has exhibited exceptional strength over the past decade, delivering a cumulative total return of 236.2% for the S&P 500 as of May 21, 2024. Those fortunate enough to hold one of the top ten holdings in the index have seen an even more lucrative median total return just shy of 1000%, largely due to share price appreciation. However, with such gains come new burdens, whether it be a concentrated portfolio in need of diversification or sizable sales-related tax liabilities.
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September 24, 2024
In a perfect world, you would know the amount needed for all your young scholars’ educational needs, and you would have that exact figure in a 529 plan. That’s not always realistic, however, as sometimes plans change and it’s hard to predict the exact figure needed for educational expenses. Thanks to the Secure Act 2.0, some of the worries surrounding overfunding 529 plans have been diminished. Starting in 2024, under certain conditions, 529 account holders can transfer up to a lifetime limit of $35,000 to a Roth IRA for the 529 plan beneficiary. But, of course, there are some restrictions and rules surrounding this exciting update.
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July 19, 2024
The SMID portfolio performed well versus the benchmark on a relative basis in the second quarter, significantly closing the gap in performance exiting Q1 and moving toward providing a level of outperformance we have delivered throughout our long history. The Technology sector was the largest contributor to outperformance, followed by Energy and Consumer Discretionary. We were also pleased to see some of our industrial automation and auto related companies rebound after struggling in recent quarters. Healthcare and Communication sectors were mild negative offsets.
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July 17, 2024
Small capitalization stocks were volatile, again, during the quarter. In April, the Portfolio declined, along with the Russell 2000 and Russell 2000 Value indices. Concerns about incremental increases in inflation and the Federal Reserve keeping interest rates “higher for longer” weighed on small capitalization stocks. May saw a rebound; small-capitalization stocks performed well but continued to lag large capitalization companies for the quarter. Money flow into the largest Artificial Intelligence companies (NVDA, AAPL, MSFT, and GOOGL) increased, contributing more than half of the S&P 500 Index’ monthly gain. The broad market continues to build record levels of concentration in the largest technology companies. According to Raymond James, the average stock was down about 3% during the quarter while the S&P 500 Index, dominated by a handful of leaders, was up 3.9%.
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July 12, 2024
The Small Cap Value portfolio ended the quarter on a down note, similar to the Russell 2000 and Russell 2000 Value Indices. We lagged the benchmarks for the month due to weaker results in Energy and Communication Services. Our Energy stocks declined after a strong performance in May, and our Communication Services stocks, which focus on the small business market, were negatively impacted by another month of weak small business sentiment.
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July 12, 2024
Stocks were mixed in June, with large cap stocks continuing to lead while small cap stocks lagged behind. Inflation data improved during the month, with the Federal Reserve’s favorite inflation indicator, the core Personal Consumption Expenditures Price Index (PCE), posting its lowest year-over-year increase in over three years. Still, the persistent lack of clarity regarding overall economic activity held back any positive sentiment that might have come from better inflation data.
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July 10, 2024
Major US equity indices put in a mixed performance in Q2, with the Dow falling (1.7%), while major performance contributions from some of the Magnificent 7 stocks helped drive the S&P and Nasdaq 3.9% and 8.3% higher, respectively. Many commentators aired concerns about market breadth as the official market cap-weighted S&P bested its equal-weight variant by nearly seven percentage points in the quarter.
Read MoreRead MoreWatch NowInstitutional - Pinnacle Insights
July 3, 2024
Exposure to innovative and transformative biotechnology companies has been a part of Pinnacle’s SMID investment strategy since our portfolio’s inception in 1996. Without a doubt, some of our most successful investments have come from this industry. Surprisingly, we have learned over the years that most investment managers avoid biotech stocks due to the inherent binary risks that come with drug development. We wanted to discuss why we think that the opportunity set is constructive.
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June 18, 2024
For most, Texas conjures images of cowboys, oil, and barbeque -- not ticker tape and fast-paced securities trading. That could soon change if BlackRock, the world’s biggest money manager, and Citadel Securities, one of the largest electronic trading firms, have anything to say about it. The two financial heavyweights are leading a group backing The Texas Stock Exchange (TXSE), which has raised $120M to launch a 100% electronic trading exchange, with a physical presence in downtown Dallas. The TXSE plans to file a registration statement with the Securities and Exchange Commission (SEC) later this year with a goal of beginning trading in 2025 and listing companies in 2026.
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June 14, 2024
After starting the quarter down, small capitalization stocks rebounded in the month of May, but the Russell 2000 and Russell 2000 Value Indices still lag large capitalization companies for the year. Money flow into the largest Artificial Intelligence companies (NVDA, APPL, MSFT and GOOGL) appears to be increasing; those companies made up more than half of the S&P 500 Index’ monthly gain.
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June 14, 2024
Stocks bounced back in May, as more constructive inflation data offered hope that an economic soft landing was still possible. In fact, a soft landing once again became the consensus expectation, with inflation leveling off and the economy showing continued resilience in the face of the Fed’s aggressive rate tightening campaign of the last two years. Corporate profits also came in better than expected, with 1Q earnings on track to grow at a 6% rate year over year, its fastest quarterly pace in two years. Lastly, the geopolitical backdrop quieted down somewhat, offering a welcome (if temporary) respite from the troubling headlines over the past year.
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June 4, 2024
Global mergers and acquisitions (“M&A”) activity suffered from a post-COVID hangover in 2023 as deal volumes declined to the lowest levels since the Great Financial Crisis. As rising interest rates and falling valuations caused buyers and sellers to back away, a backlog of potential acquisition activity built up.
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June 4, 2024
This paper highlights the potential for adding significant cash flow to an Endowment or Foundation (E&F) through the strategic implementation of writing calls, especially on concentrated stock positions. This approach proves particularly advantageous for endowments and foundations that hold significant concentrations of stock and are open to diversifying their holdings as certain stocks are called away due to rising prices over time. Moreover, the tax-free status of endowments and foundations presents a significant advantage, as much of the income generated through this strategy is short-term in nature.
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May 29, 2024
As sustainability and energy transition continue to be global priorities, investors increasingly seek companies that balance environmental responsibility with economic viability. Enter liquefied natural gas (LNG) and its transformative potential as a bridge between traditional fossil fuels and renewable alternatives. Within this landscape, Golar LNG stands as a landmark player that is reshaping the LNG industry with innovative technologies and strategic initiatives. This report delves into the intricacies of LNG, explores its significance and challenges, and outlines the pivotal role that Golar LNG plays in shaping its future.
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May 7, 2024
In our Spring 2024 Financial Planning Newsletter, we dive into various financial planning topics that can often accompany serious illness. Inside this guide, you will find essential insights on disability insurance, estate planning, life insurance post-diagnosis and strategies for itemizing medical expenses. We also discuss how these factors can impact your overall financial plan. While it can be difficult to discuss these topics, our financial planning committee continues to emphasize the importance of planning ahead. As always, our team is here to support you in reviewing and strengthening your financial plan - especially during uncertain times.
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May 7, 2024
April marked a change in investor sentiment from the positive aura that surrounded the first quarter results. The first quarter saw investors feeling more comfortable with the macro-economic data – the US economy continued to improve steadily while inflation seemed to be moderating. As April began, some investors were even calling for a “no landing” scenario, with no interest rate cuts, but above-trend economic growth and more dependable corporate profit growth. This, it was hoped, would provide a solid platform for stocks to move higher.
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May 6, 2024
Exposure to innovative and transformative biotechnology companies has been a part of Pinnacle’s SMID investment strategy since our portfolio’s inception in 1996. Without a doubt, some of our most successful investments have come from this industry. Surprisingly, we have learned over the years that most investment managers avoid biotech stocks due to the inherent binary risks that come with drug development.
Read MoreRead MoreWatch NowIndividual - Commentary & Outlook
April 19, 2024
The S&P 500 notched its biggest Q1 advance in half a decade, rising 10.2%. This marked the index’s fifth gain in the last six quarters and a second straight double-digit quarterly percentage gain. Meanwhile, the Nasdaq narrowly missed what would have been its fourth double-digit percentage gain in the last five quarters.
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April 15, 2024
Stocks powered ahead in the first quarter, adding to strong fourth quarter gains. Continued enthusiasm for all things artificial intelligence (AI), along with US economic resilience and expectations for eventual rate cuts by the Federal Reserve, provided an attractive platform for equity market investors. An economic soft landing, deemed a far-fetched hope early in 2023, became the consensus call in the first quarter of 2024, as the fears of a Fed-induced recession faded.
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April 11, 2024
Stocks continued their upward ascent in March, with investors gaining increased confidence in the economic environment. After looking over their shoulder toward the possibility of imminent recession over the past two years, investors finally seem to be coming around to the idea that maybe a recession is not in the cards. Continued resiliency in the economic data, despite a persistent inversion in the yield curve, and moderating inflation have increasingly made an economic soft landing a likely scenario. Late in the month, some investors were even calling for a “no landing” scenario, which means no interest rate cuts, but also means above-trend economic growth and more dependable corporate profit growth as we move through 2024.
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March 20, 2024
We are excited to share with you this concise report on Bitcoin – which serves as a companion piece to our recent full-length podcast episode – where Adam Armstrong and Austin Hagaman discussed Bitcoin basics, its pricing, the upcoming halving-event, the recent host of ETFs and much more! Click to download the full report and gain access to our full analysis and be sure to listen to the full episode of our podcast, Amplified Wealth for a more comprehensive discussion on the digital currency and its future in the marketplace.
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March 11, 2024
Stocks resumed their upward momentum in February, led once again by the surging artificial-intelligence related stocks. New all-time records were hit for the Standard & Poors’ 500 and NASDAQ Composite, both of which have significant exposure to the large cap Technology stocks that are seen as the early winners in the AI boom. These index gains came despite the scaling back of interest rate cut expectations by investors vs. the end of 2023, when pundits were forecasting as many as seven rate cuts in 2024.
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March 11, 2024
The February earnings season was a tumultuous few weeks for the Small Capitalization Value (SCV) Portfolio. We had several companies that produced fine 4th Quarter earnings but delivered somewhat cautious and/or disappointing forward outlooks.
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February 13, 2024
Pinnacle makes the case that current market conditions are encouraging for small caps to reward investors in its recent white paper entitled “It’s Time to Own U.S. Small Capitalization Equities,” as highlighted in a recent issue of Institutional Investor.
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Institutional - Commentary & Outlook
February 13, 2024
Small-cap stocks have been underperforming larger ones for the second longest stretch since the 1930s. But there are signals that small-cap stocks may be coming out of their dark stretch. As outlined in a report by advisor Pinnacle Associates, the widening gap began in December 2016. In the subsequent seven years ending November 30, 2023, small caps returned 46.25 percent, compared to the S&P 500 generating returns nearly triple that mark at 130.9 percent.
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February 13, 2024
After a ferocious market rally in November and December, stocks were mixed in January. Some consolidation was to be expected, after a two-month rally that saw the stock indexes rise anywhere from roughly 15% (large caps), to 20% (mid caps), to 23% (small caps). Developments during the month were generally positive, as economic and inflation data continued to be favorable. Hanging over the market were continued geopolitical concerns over events in the Middle East, most notably the attacks on commercial shipping by the Iran-allied Houthis in Yemen and a potential widening of the war.
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January 22, 2024
What a difference a year can make. US equities rose in 2023, with the major indices erasing their 2022 declines. The Dow achieved an all-time high, while the S&P closed the year a touch short of its record close from January of 2022. The positive year for the market appeared to be in jeopardy as stock pulled back throughout Q3 before bottoming in late October and rallying into year-end.
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January 17, 2024
According to our preliminary results, the Small Capitalization Portfolio Composite was up 12.12%, net of fees, for the quarter, slightly behind the 14.03% gain for the Russell 2000 Index and the 15.26% gain of the Russell 2000 Value Index1. For the year, the Portfolio Composite was up 12.53%, net of fees, versus up 16.93% for the Russell 2000 Index and up 14.65% for the Russell 2000 Value Index.
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January 17, 2024
After nearly a decade of underperformance, is the tide finally shifting in favor of small cap stocks? For a host of reasons (primarily, rising interest rates and exogenous economic concerns), investors have been hesitant to scale down the market cap ladder, leaving many high-quality small cap stocks under-owned and undervalued.
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January 8, 2024
Stocks posted their second consecutive month of robust gains, as a powerful two month rally off of the late October lows pushed the quarterly and annual returns solidly into positive territory. The reason for December’s rally was similar to that for the previous month’s rally: another favorable inflation reading that led observers to see disinflation in the data, with the Fed following up with increasingly dovish comments.
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December 15, 2023
A soft landing - once thought to only be achieved by Mr. Clause himself as he arrives on rooftops around the world – has potentially been attained by The Fed after a two-year tightening cycle. On Wednesday, the Federal Reserve announced optimism about a soft landing, known as the long-awaited “Fed-Pivot” – projecting short-term rate cuts and a gradual return of inflation to its 2.0% goal without a recession. Despite maintaining current interest rates and tightening pace, the Fed revised its short-term interest rate projections significantly downward.
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December 12, 2023
Stocks rebounded in November, posting robust returns across the board after three consecutive weak months. November was not only the best month for the market since July 2022, but it was the second-best November since 1980. The main driver of such strong gains during the month was a meaningful decline in yields.
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November 22, 2023
To help you plan for the upcoming season, we are excited to share with you our 2024 Key Tax Facts sheet. This two-page sheet provides a snapshot on all of the latest tax updates to help you begin your tax planning process.
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November 15, 2023
It was another difficult month for stocks in October, with unsettling developments on the macroeconomic, political and geopolitical front taking a toll on investor sentiment. In early October, the world was shocked by events in the Middle East, namely Hamas’ brutal attack on Israeli citizens. The subsequent furious response by Israel’s military led to fears of a wider war involving other Arab countries, with negative implications for oil prices and overall global economic growth. This conflict comes on top of already-existing tensions with China and the continued destructive implications from the Russia-Ukraine war.
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November 8, 2023
At Pinnacle Associates, we firmly believe that effective long-term financial success hinges on proactive planning. With this in mind, we share some valuable year-end planning tips to ensure that you end this year and begin the next year feeling well informed and prepared for what’s ahead.
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October 18, 2023
Major US equity indices retreated in Q3, with the S&P 500 hitting a year-to-date high at the end of July but falling thereafter, closing the quarter -3.7% lower, with most of the decline taking place during September. Still, the benchmark sits at +12.1% year-to-date at quarter-end.
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October 16, 2023
Central banks are determined to slow the economy in an ongoing effort to control inflation. Despite this, conditions have remained resilient with +3% growth expected in the third quarter. This is both the bear case and the bull case for the stock market. Both statements are true, and the conflict was evident throughout the quarter.
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October 13, 2023
September lived up to its billing as the worst performing month of the year for stocks, with small and large caps declining across the board. This was the second consecutive down month for stocks, representing the first back-to-back monthly declines since (interestingly) August and September of 2022.
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September 20, 2023
For much of this year, the markets have seen significant hype around artificial intelligence (AI) and AI-related stocks. The term artificial intelligence refers to machines that can not only mimic human responses and learn but can also adapt and evolve like human beings. Many experts are calling generative AI the “next frontier” of AI, given its ability to digest huge amounts of data to identify patterns and structures within that existing data to quickly generate new content, including text, images, audio and synthetic data.
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September 15, 2023
Stocks posted their first losing month since February, and only their second down month overall this year. The indexes fell in the first three weeks of August, in response to rising interest rates, mixed inflation news and some consolidation in the heretofore surging technology stocks. They rebounded near month’s end, but not by enough to offset earlier losses.
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September 15, 2023
For parents saving for their children’s college education, a Section 529 plan may offer several advantages. Section 529 plans are operated by individual states and let families set aside money to cover future education expenses on behalf of account beneficiaries.
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September 15, 2023
Financial planning is the process of evaluating and choosing an optimal strategy to achieve your financial goals. We work with you to create a personalized plan based on an integrated review of your unique circumstances. As your life changes, we make adjustments to your plan and portfolio, keeping you on the path to success.
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September 15, 2023
A Roth conversion is the transfer of funds from a Traditional (pre-tax) retirement account to a Roth (after-tax) retirement account. Taxes are paid on the funds converted in the year of conversion.
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September 15, 2023
401(k) plans are tax-preferred investment accounts managed by employers. Traditionally, 401(k)s are funded with pre-tax dollars and taxed at withdrawal. Some plans have Roth options in which the account is funded with after-tax dollars and no tax is paid at withdrawal.
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November 8, 2023
IRAs (individual retirement accounts) are tax-preferred investment accounts intended for retirement savings. Roth and Traditional IRAs both benefit from not paying taxes on gains when realized, but they differ in when they are taxed.
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September 15, 2023
One of the greatest ways we can add value to our clients is by removing the emotional aspect from investment decisions. Our team has successfully guided numerous entrepreneurs/families through some of the most significant monetary events in their lifetime. Helping clients prosper in a new phase of life is one of our strengths.
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September 15, 2023
The Secure Act 2.0 was signed into legislation on December 29, 2022 – with the goal of improving retirement savings options in the United States. And while the bill contains over 90 provisions designed to help Americans strengthen their financial security, we’ve identified the key provisions for individuals in this cheat sheet.
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September 15, 2023
The Fed may have avoided recession for now, but more economic pain may be necessary to bring inflation down to its long-term target.
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September 15, 2023
Stocks posted yet another positive month in July, as investors increasingly anticipated a “Goldilocks”, soft landing scenario of stable economic trends and declining inflationary pressures.
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September 15, 2023
The first half of 2023 has concluded, and it is one for the record books. Despite seemingly countless reasons to be wary of the markets – regional banks collapsing, core inflation (excluding food and energy) stubbornly remaining above or near 5% and a debt-ceiling resolution being pushed to the 11th hour– the S&P 500 climbed over 16% on a total return basis to start the first half of the year.
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September 15, 2023
Defying all expectations, stocks posted another quarter of robust gains. Enthusiasm around artificial intelligence (AI) led to a surge in Technology stocks, propelling the major averages higher in the second quarter.
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September 15, 2023
Stocks continued their upward ascent in June, in a broad-based rally that lifted all of the market sectors to positive monthly returns. Investors were heartened by the Fed’s pause of its year-long interest rate tightening campaign, as well as by fading fears of imminent recession as economic indicators continued to outpace expectations.
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September 15, 2023
Stocks traded in a narrow range in May, masking what was actually a very eventful month. It wasn’t only the contentious negotiations on the US debt ceiling, which raised the specter of a technical US debt default.
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September 15, 2023
Stocks traded in a narrow range in April, finishing mixed. For the second consecutive month, large caps posted positive gains and smaller stocks mostly negative returns, although the differential between the two asset classes was narrower than last month.
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September 15, 2023
In the first half of the year, we saw the failure of three mid-sized banks, a marked slowdown in the growth of the largest technology firms, and a round of debt ceiling negotiations that pushed the US closer than ever to default. Despite all of this, the S&P 500 built on its gains from the first quarter, generating a total return of +8.7% in the second and bringing year-to-date returns to +16.9%.
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September 15, 2023
Stocks posted mixed returns in March, with considerable volatility along the way. Investors came into the month still worried about the stronger-than-expected economic data and stubbornly-high inflation readings that were seen in February.
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September 15, 2023
After a powerful rally in January, stocks were down across the board in February as investors responded negatively to stronger-than-expected economic data and persistently high inflation readings.
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September 15, 2023
After a dismal 2022, stocks came surging out of the gates in 2023. And it wasn’t just stocks that gained. Unlike 2022, when almost all asset classes posted negative returns, the near opposite occurred in January, and positive returns were seen across the board.
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Individual - In the News
September 15, 2023
As investment managers, it is part of our nature to think about the impact of evolving technology. How will innovative technologies affect our lives? Which companies will benefit? How can modern technologies enhance our capabilities as investment advisors to better serve our clients?
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September 15, 2023
We are very excited to announce our partnership with Investment Management of Virginia, LLC (IMVA). The path ahead is bright and we are excited to have the IMVA team join us on that journey!
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Individual - In the News
September 15, 2023
Pinnacle Associates congratulates Jim Ferrare, CFA, CPA on being included in this year’s Forbes Best in State Wealth Advisors rankings as recognition of his commitment to putting clients first, leading with exceptional ideas, and demonstrating integrity. It’s the sixth year in a row that Jim has been included on the list.
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September 15, 2023
Pinnacle Associates Portfolio Manager @Randy Baron joined @The Business Brew podcast this week to discuss his #investment philosophy and interest in the #synthetic biology space. Bill and Randy explore the ethos of high conviction investing, especially in the current market backdrop.
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Institutional - In the News
September 15, 2023
Pinnacle Associates Portfolio Manager @Randy Baron explains to @Forbes why @MiX Telematics (MIXT) is unlikely to be the first name that comes to mind when speaking about tech, but it has an important spot in how tech supports the global supply chain as one of the biggest players in tracking vehicle fleets.
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December 11, 2024
Stocks continued to roll on in November, posting another strong month in an already impressive 2024. All of the major stock market indexes – the Standard & Poors’ 500, the Dow Jones Industrials, the NASDAQ Composite, as well as the mid cap and small cap indexes – ran to record highs during the month, in response to continued resilient economic data and moderate inflation, an accommodative monetary stance by the Federal Reserve, and of course, the Trump victory and Republican sweep.
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December 11, 2024
Throughout the summer, the market focused on the outlook for lower in- terest rates which lifted our real estate and financial sector holdings. Investor focus has shifted to data centers and the energy demand required for the build out of that sector. Our portfolio has several positions that fit this theme (Solaris Oilfield Infrastructure, Argan, BWX Technologies, and Vicor), and these stocks have become more popular.
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November 25, 2024
Our Portfolio Manager, Ryan Byrne, delves into the growing appeal of sports investments in Chief Investment Officer’s latest feature, Beyond the Game. From owning a stake in professional teams to exploring new avenues for growth, this article highlights why sports investing continues to gain traction.
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November 19, 2024
Unifi, Inc., based in Greensboro, North Carolina, manufactures synthetic and recycled textiles assembled from polyester, nylon, and plastic. The company’s products are sold to makers of yarn and weavers who produce fabric for the apparel, home furnishings, and industrial markets. Unifi’s growth driver is its sustainability-oriented REPREVE® brand. REPREVE produces fibers from recycled materials, in essence turning plastic bottles into sustainable yarn.
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November 12, 2024
October, typically the stock market’s most volatile month, was a weak one for the financial markets. Both stock and bond investments generated negative returns. This occurred despite two positive developments – moderate inflation data that moved closer to the Fed’s 2% target and surprisingly favorable economic data. The upbeat economic activity, including strength in jobs, consumer spending and overall GDP, led investors to conclude that, although recent economic data had fluctuated in both directions, any remaining recessionary concerns should probably be put to rest.
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November 12, 2024
The US stock market saw divergent performance in October, ending the month with modest declines. The Russell 2000 experienced more pronounced losses, exceeding 1% for the month. Sector performance also exhibited significant divergence: Financials, Communication Services, and Energy were the only sectors that posted gains during the month; Health Care, Consumer Staples, and Materials experienced notable declines, each falling by at least 3%.
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November 14, 2024
With Donald Trump’s recent victory in the presidential election, financial markets are poised for potential shifts across various sectors. Historically, markets tend to stabilize when political outcomes are clear, and now that the election is settled, initial uncertainty has eased. However, as we assess the implications of a Trump presidency, investors are watching closely for policy changes that could affect different asset classes.
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December 2, 2024
September was volatile heading into the Federal Reserve interest rate decision but ended the month about flat. The net result was an overall strong quarter for small capitalization stocks. Currently, the Federal Reserve has begun cutting interest rates, job numbers are holding up (but not too much), and investors are getting “all-in” on an economic soft-landing economic projection. As of mid-October, it is hard to find a bearish strategist on Wall Street.
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October 25, 2024
Often dismissed as mere vanity assets for the affluent, sports-related investments have quietly outperformed most asset classes over the past two decades. The evolving media landscape and fervent fan loyalty have unlocked profitable opportunities, transforming sports into a dynamic investment frontier. From a financial perspective, factors such as low leverage, improving margins, stable and predictable cash flows, and rising asset values have cemented sports as a viable and attractive investment avenue. We believe the commercialization of sports is still just warming up.
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October 18, 2024
U.S. equity markets saw broad gains in Q3, with all major indices posting positive returns. Notably, market leadership, which had been concentrated in large-cap tech, broadened as other sectors and asset classes joined the fun. This is reflected in the impressive performance of the equal-weighted S&P 500, up 9.1% for the quarter, surpassing the market-cap weighted S&P 500’s gain of 5.53%. Small cap companies also advanced, with the Russell 2000 rising 8.9%. The top-performing industries included asset managers, utilities, building products, REITs, property and casualty insurers, credit cards, and cruise lines. On the flip side, energy, semiconductors, software, money-center banks, department stores, steel, and autos lagged behind.
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October 16, 2024
Stocks continued to advance in Q3, with strength broadening out and away from the almighty Magnificent 7. Key to the market breadth was growing expectations during the quarter for a Fed rate cut, which was ultimately confirmed when the Fed reduced rates by 50 basis points at its September meeting. The positive reaction to the long-awaited ease in rates trumped a negative turn in Mideast tensions, as well as continued uncertainty around the presidential election.
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October 22, 2024
As we at Pinnacle Associates celebrate our 40th anniversary, we proudly reflect on the foundation of excellence we’ve built and the opportunities that lie ahead. Our investor commitment is unwavering, supported by an experienced and stable investment team and a time-tested investment approach that has successfully navigated many different market cycles. While the past year has been challenging, we feel strongly that we are poised to rebound and deliver the level of outperformance we have accomplished in the past, making this an ideal time to invest in our Small/Mid Growth (SMID) portfolio.
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October 10, 2024
Similar to August, September started off on a weak note and subsequently rallied back to post solid monthly gains. During the first week of a seasonally difficult month, stocks fell nearly 5% on concerns about the health of the US economy after another weak employment report and poor manufacturing data. But stocks subsequently rebounded on improving economic indicators, positive inflation readings and the increasing possibility that the Federal Reserve Board might act more aggressively to cut rates at its upcoming meeting.
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September 24, 2024
Last week’s decision by the Federal Reserve to cut the federal funds rate by 50 basis points marks a significant moment in the central banks’ continual effort to manage the U.S. economy’s trajectory. This move reduced the benchmark rate to a range between 4.75% and 5%, positioning the Fed into a new phase of monetary policy. While rate cuts typically aim to stimulate growth in times of crisis, we caution against reading into the magnitude of this cut and whether it reflects concerns that go beyond merely fine-tuning inflation control.
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September 12, 2024
August started off in tumultuous fashion, continuing a volatile summer season after a very eventful July. In July, we saw dramatic developments on the political, financial and geopolitical fronts, and investors were hoping for calm markets in August as they headed to the beach. But it was not to be.
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September 12, 2024
Small capitalization stocks ended the summer on a weak note as August gave back some of the July gains. The Federal Reserve has moderated its aggressive interest rate stance, but investors are still cautious about inflation and the pace of future interest rate cuts. In addition, weaker economic data raised investor concerns about a potential economic soft landing.
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August 19, 2024
Since the beginning of the year, we have been expecting (hoping) for a rotation from momentum to value stocks, and July delivered the reversion to the mean trade with a bang. The Pinnacle Small Cap Value Portfolio composite came in above the Russell 2000 Value and the Russell 2000 Indices for the month.
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August 15, 2024
July was a very eventful month, with dramatic and unprecedented developments on the US political front, a potential sea change in the financial markets, intensifying geopolitical tensions and the continued obsession with the Federal Reserve Board’s next moves.
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July 23, 2024
The US equity market has exhibited exceptional strength over the past decade, delivering a cumulative total return of 236.2% for the S&P 500 as of May 21, 2024. Those fortunate enough to hold one of the top ten holdings in the index have seen an even more lucrative median total return just shy of 1000%, largely due to share price appreciation. However, with such gains come new burdens, whether it be a concentrated portfolio in need of diversification or sizable sales-related tax liabilities.
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July 12, 2024
The Small Cap Value portfolio ended the quarter on a down note, similar to the Russell 2000 and Russell 2000 Value Indices. We lagged the benchmarks for the month due to weaker results in Energy and Communication Services. Our Energy stocks declined after a strong performance in May, and our Communication Services stocks, which focus on the small business market, were negatively impacted by another month of weak small business sentiment.
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July 12, 2024
Stocks were mixed in June, with large cap stocks continuing to lead while small cap stocks lagged behind. Inflation data improved during the month, with the Federal Reserve’s favorite inflation indicator, the core Personal Consumption Expenditures Price Index (PCE), posting its lowest year-over-year increase in over three years. Still, the persistent lack of clarity regarding overall economic activity held back any positive sentiment that might have come from better inflation data.
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July 10, 2024
Major US equity indices put in a mixed performance in Q2, with the Dow falling (1.7%), while major performance contributions from some of the Magnificent 7 stocks helped drive the S&P and Nasdaq 3.9% and 8.3% higher, respectively. Many commentators aired concerns about market breadth as the official market cap-weighted S&P bested its equal-weight variant by nearly seven percentage points in the quarter.
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June 14, 2024
After starting the quarter down, small capitalization stocks rebounded in the month of May, but the Russell 2000 and Russell 2000 Value Indices still lag large capitalization companies for the year. Money flow into the largest Artificial Intelligence companies (NVDA, APPL, MSFT and GOOGL) appears to be increasing; those companies made up more than half of the S&P 500 Index’ monthly gain.
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June 14, 2024
Stocks bounced back in May, as more constructive inflation data offered hope that an economic soft landing was still possible. In fact, a soft landing once again became the consensus expectation, with inflation leveling off and the economy showing continued resilience in the face of the Fed’s aggressive rate tightening campaign of the last two years. Corporate profits also came in better than expected, with 1Q earnings on track to grow at a 6% rate year over year, its fastest quarterly pace in two years. Lastly, the geopolitical backdrop quieted down somewhat, offering a welcome (if temporary) respite from the troubling headlines over the past year.
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June 4, 2024
Global mergers and acquisitions (“M&A”) activity suffered from a post-COVID hangover in 2023 as deal volumes declined to the lowest levels since the Great Financial Crisis. As rising interest rates and falling valuations caused buyers and sellers to back away, a backlog of potential acquisition activity built up.
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June 4, 2024
This paper highlights the potential for adding significant cash flow to an Endowment or Foundation (E&F) through the strategic implementation of writing calls, especially on concentrated stock positions. This approach proves particularly advantageous for endowments and foundations that hold significant concentrations of stock and are open to diversifying their holdings as certain stocks are called away due to rising prices over time. Moreover, the tax-free status of endowments and foundations presents a significant advantage, as much of the income generated through this strategy is short-term in nature.
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May 29, 2024
As sustainability and energy transition continue to be global priorities, investors increasingly seek companies that balance environmental responsibility with economic viability. Enter liquefied natural gas (LNG) and its transformative potential as a bridge between traditional fossil fuels and renewable alternatives. Within this landscape, Golar LNG stands as a landmark player that is reshaping the LNG industry with innovative technologies and strategic initiatives. This report delves into the intricacies of LNG, explores its significance and challenges, and outlines the pivotal role that Golar LNG plays in shaping its future.
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May 7, 2024
In our Spring 2024 Financial Planning Newsletter, we dive into various financial planning topics that can often accompany serious illness. Inside this guide, you will find essential insights on disability insurance, estate planning, life insurance post-diagnosis and strategies for itemizing medical expenses. We also discuss how these factors can impact your overall financial plan. While it can be difficult to discuss these topics, our financial planning committee continues to emphasize the importance of planning ahead. As always, our team is here to support you in reviewing and strengthening your financial plan - especially during uncertain times.
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May 7, 2024
April marked a change in investor sentiment from the positive aura that surrounded the first quarter results. The first quarter saw investors feeling more comfortable with the macro-economic data – the US economy continued to improve steadily while inflation seemed to be moderating. As April began, some investors were even calling for a “no landing” scenario, with no interest rate cuts, but above-trend economic growth and more dependable corporate profit growth. This, it was hoped, would provide a solid platform for stocks to move higher.
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May 6, 2024
Exposure to innovative and transformative biotechnology companies has been a part of Pinnacle’s SMID investment strategy since our portfolio’s inception in 1996. Without a doubt, some of our most successful investments have come from this industry. Surprisingly, we have learned over the years that most investment managers avoid biotech stocks due to the inherent binary risks that come with drug development.
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April 19, 2024
The S&P 500 notched its biggest Q1 advance in half a decade, rising 10.2%. This marked the index’s fifth gain in the last six quarters and a second straight double-digit quarterly percentage gain. Meanwhile, the Nasdaq narrowly missed what would have been its fourth double-digit percentage gain in the last five quarters.
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April 15, 2024
Stocks powered ahead in the first quarter, adding to strong fourth quarter gains. Continued enthusiasm for all things artificial intelligence (AI), along with US economic resilience and expectations for eventual rate cuts by the Federal Reserve, provided an attractive platform for equity market investors. An economic soft landing, deemed a far-fetched hope early in 2023, became the consensus call in the first quarter of 2024, as the fears of a Fed-induced recession faded.
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April 11, 2024
Stocks continued their upward ascent in March, with investors gaining increased confidence in the economic environment. After looking over their shoulder toward the possibility of imminent recession over the past two years, investors finally seem to be coming around to the idea that maybe a recession is not in the cards. Continued resiliency in the economic data, despite a persistent inversion in the yield curve, and moderating inflation have increasingly made an economic soft landing a likely scenario. Late in the month, some investors were even calling for a “no landing” scenario, which means no interest rate cuts, but also means above-trend economic growth and more dependable corporate profit growth as we move through 2024.
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March 20, 2024
We are excited to share with you this concise report on Bitcoin – which serves as a companion piece to our recent full-length podcast episode – where Adam Armstrong and Austin Hagaman discussed Bitcoin basics, its pricing, the upcoming halving-event, the recent host of ETFs and much more! Click to download the full report and gain access to our full analysis and be sure to listen to the full episode of our podcast, Amplified Wealth for a more comprehensive discussion on the digital currency and its future in the marketplace.
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March 11, 2024
Stocks resumed their upward momentum in February, led once again by the surging artificial-intelligence related stocks. New all-time records were hit for the Standard & Poors’ 500 and NASDAQ Composite, both of which have significant exposure to the large cap Technology stocks that are seen as the early winners in the AI boom. These index gains came despite the scaling back of interest rate cut expectations by investors vs. the end of 2023, when pundits were forecasting as many as seven rate cuts in 2024.
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March 11, 2024
The February earnings season was a tumultuous few weeks for the Small Capitalization Value (SCV) Portfolio. We had several companies that produced fine 4th Quarter earnings but delivered somewhat cautious and/or disappointing forward outlooks.
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February 13, 2024
Pinnacle makes the case that current market conditions are encouraging for small caps to reward investors in its recent white paper entitled “It’s Time to Own U.S. Small Capitalization Equities,” as highlighted in a recent issue of Institutional Investor.
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February 13, 2024
Small-cap stocks have been underperforming larger ones for the second longest stretch since the 1930s. But there are signals that small-cap stocks may be coming out of their dark stretch. As outlined in a report by advisor Pinnacle Associates, the widening gap began in December 2016. In the subsequent seven years ending November 30, 2023, small caps returned 46.25 percent, compared to the S&P 500 generating returns nearly triple that mark at 130.9 percent.
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February 13, 2024
After a ferocious market rally in November and December, stocks were mixed in January. Some consolidation was to be expected, after a two-month rally that saw the stock indexes rise anywhere from roughly 15% (large caps), to 20% (mid caps), to 23% (small caps). Developments during the month were generally positive, as economic and inflation data continued to be favorable. Hanging over the market were continued geopolitical concerns over events in the Middle East, most notably the attacks on commercial shipping by the Iran-allied Houthis in Yemen and a potential widening of the war.
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January 22, 2024
What a difference a year can make. US equities rose in 2023, with the major indices erasing their 2022 declines. The Dow achieved an all-time high, while the S&P closed the year a touch short of its record close from January of 2022. The positive year for the market appeared to be in jeopardy as stock pulled back throughout Q3 before bottoming in late October and rallying into year-end.
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January 17, 2024
According to our preliminary results, the Small Capitalization Portfolio Composite was up 12.12%, net of fees, for the quarter, slightly behind the 14.03% gain for the Russell 2000 Index and the 15.26% gain of the Russell 2000 Value Index1. For the year, the Portfolio Composite was up 12.53%, net of fees, versus up 16.93% for the Russell 2000 Index and up 14.65% for the Russell 2000 Value Index.
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January 17, 2024
After nearly a decade of underperformance, is the tide finally shifting in favor of small cap stocks? For a host of reasons (primarily, rising interest rates and exogenous economic concerns), investors have been hesitant to scale down the market cap ladder, leaving many high-quality small cap stocks under-owned and undervalued.
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January 8, 2024
Stocks posted their second consecutive month of robust gains, as a powerful two month rally off of the late October lows pushed the quarterly and annual returns solidly into positive territory. The reason for December’s rally was similar to that for the previous month’s rally: another favorable inflation reading that led observers to see disinflation in the data, with the Fed following up with increasingly dovish comments.
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December 15, 2023
A soft landing - once thought to only be achieved by Mr. Clause himself as he arrives on rooftops around the world – has potentially been attained by The Fed after a two-year tightening cycle. On Wednesday, the Federal Reserve announced optimism about a soft landing, known as the long-awaited “Fed-Pivot” – projecting short-term rate cuts and a gradual return of inflation to its 2.0% goal without a recession. Despite maintaining current interest rates and tightening pace, the Fed revised its short-term interest rate projections significantly downward.
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December 12, 2023
Stocks rebounded in November, posting robust returns across the board after three consecutive weak months. November was not only the best month for the market since July 2022, but it was the second-best November since 1980. The main driver of such strong gains during the month was a meaningful decline in yields.
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November 22, 2023
To help you plan for the upcoming season, we are excited to share with you our 2024 Key Tax Facts sheet. This two-page sheet provides a snapshot on all of the latest tax updates to help you begin your tax planning process.
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November 15, 2023
It was another difficult month for stocks in October, with unsettling developments on the macroeconomic, political and geopolitical front taking a toll on investor sentiment. In early October, the world was shocked by events in the Middle East, namely Hamas’ brutal attack on Israeli citizens. The subsequent furious response by Israel’s military led to fears of a wider war involving other Arab countries, with negative implications for oil prices and overall global economic growth. This conflict comes on top of already-existing tensions with China and the continued destructive implications from the Russia-Ukraine war.
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October 18, 2023
Major US equity indices retreated in Q3, with the S&P 500 hitting a year-to-date high at the end of July but falling thereafter, closing the quarter -3.7% lower, with most of the decline taking place during September. Still, the benchmark sits at +12.1% year-to-date at quarter-end.
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October 16, 2023
Central banks are determined to slow the economy in an ongoing effort to control inflation. Despite this, conditions have remained resilient with +3% growth expected in the third quarter. This is both the bear case and the bull case for the stock market. Both statements are true, and the conflict was evident throughout the quarter.
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October 13, 2023
September lived up to its billing as the worst performing month of the year for stocks, with small and large caps declining across the board. This was the second consecutive down month for stocks, representing the first back-to-back monthly declines since (interestingly) August and September of 2022.
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September 20, 2023
For much of this year, the markets have seen significant hype around artificial intelligence (AI) and AI-related stocks. The term artificial intelligence refers to machines that can not only mimic human responses and learn but can also adapt and evolve like human beings. Many experts are calling generative AI the “next frontier” of AI, given its ability to digest huge amounts of data to identify patterns and structures within that existing data to quickly generate new content, including text, images, audio and synthetic data.
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September 15, 2023
Stocks posted their first losing month since February, and only their second down month overall this year. The indexes fell in the first three weeks of August, in response to rising interest rates, mixed inflation news and some consolidation in the heretofore surging technology stocks. They rebounded near month’s end, but not by enough to offset earlier losses.
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September 15, 2023
The Fed may have avoided recession for now, but more economic pain may be necessary to bring inflation down to its long-term target.
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September 15, 2023
Stocks posted yet another positive month in July, as investors increasingly anticipated a “Goldilocks”, soft landing scenario of stable economic trends and declining inflationary pressures.
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September 15, 2023
The first half of 2023 has concluded, and it is one for the record books. Despite seemingly countless reasons to be wary of the markets – regional banks collapsing, core inflation (excluding food and energy) stubbornly remaining above or near 5% and a debt-ceiling resolution being pushed to the 11th hour– the S&P 500 climbed over 16% on a total return basis to start the first half of the year.
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September 15, 2023
Defying all expectations, stocks posted another quarter of robust gains. Enthusiasm around artificial intelligence (AI) led to a surge in Technology stocks, propelling the major averages higher in the second quarter.
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September 15, 2023
Stocks continued their upward ascent in June, in a broad-based rally that lifted all of the market sectors to positive monthly returns. Investors were heartened by the Fed’s pause of its year-long interest rate tightening campaign, as well as by fading fears of imminent recession as economic indicators continued to outpace expectations.
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September 15, 2023
Stocks traded in a narrow range in May, masking what was actually a very eventful month. It wasn’t only the contentious negotiations on the US debt ceiling, which raised the specter of a technical US debt default.
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September 15, 2023
Stocks traded in a narrow range in April, finishing mixed. For the second consecutive month, large caps posted positive gains and smaller stocks mostly negative returns, although the differential between the two asset classes was narrower than last month.
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September 15, 2023
In the first half of the year, we saw the failure of three mid-sized banks, a marked slowdown in the growth of the largest technology firms, and a round of debt ceiling negotiations that pushed the US closer than ever to default. Despite all of this, the S&P 500 built on its gains from the first quarter, generating a total return of +8.7% in the second and bringing year-to-date returns to +16.9%.
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September 15, 2023
Stocks posted mixed returns in March, with considerable volatility along the way. Investors came into the month still worried about the stronger-than-expected economic data and stubbornly-high inflation readings that were seen in February.
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September 15, 2023
After a powerful rally in January, stocks were down across the board in February as investors responded negatively to stronger-than-expected economic data and persistently high inflation readings.
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September 15, 2023
After a dismal 2022, stocks came surging out of the gates in 2023. And it wasn’t just stocks that gained. Unlike 2022, when almost all asset classes posted negative returns, the near opposite occurred in January, and positive returns were seen across the board.
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November 13, 2024
At Pinnacle Associates, we understand that addressing health-related financial issues requires both sensitivity and a proactive approach. In this Fall edition of our Financial Planning newsletter, we explore key areas that will help you navigate the financial complexities as you approach retirement. Inside this guide, you’ll discover important insights on maximizing Social Security benefits, managing portfolio allocations, making the most of Roth conversions, and understanding Medicare. We also address the potential impacts of the Tax Cuts and Jobs Act’s impending sunset and offer personalized strategies for safeguarding your investments as you move into this next chapter of life.
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September 24, 2024
In a perfect world, you would know the amount needed for all your young scholars’ educational needs, and you would have that exact figure in a 529 plan. That’s not always realistic, however, as sometimes plans change and it’s hard to predict the exact figure needed for educational expenses. Thanks to the Secure Act 2.0, some of the worries surrounding overfunding 529 plans have been diminished. Starting in 2024, under certain conditions, 529 account holders can transfer up to a lifetime limit of $35,000 to a Roth IRA for the 529 plan beneficiary. But, of course, there are some restrictions and rules surrounding this exciting update.
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November 8, 2023
At Pinnacle Associates, we firmly believe that effective long-term financial success hinges on proactive planning. With this in mind, we share some valuable year-end planning tips to ensure that you end this year and begin the next year feeling well informed and prepared for what’s ahead.
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September 15, 2023
For parents saving for their children’s college education, a Section 529 plan may offer several advantages. Section 529 plans are operated by individual states and let families set aside money to cover future education expenses on behalf of account beneficiaries.
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September 15, 2023
Financial planning is the process of evaluating and choosing an optimal strategy to achieve your financial goals. We work with you to create a personalized plan based on an integrated review of your unique circumstances. As your life changes, we make adjustments to your plan and portfolio, keeping you on the path to success.
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September 15, 2023
A Roth conversion is the transfer of funds from a Traditional (pre-tax) retirement account to a Roth (after-tax) retirement account. Taxes are paid on the funds converted in the year of conversion.
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September 15, 2023
401(k) plans are tax-preferred investment accounts managed by employers. Traditionally, 401(k)s are funded with pre-tax dollars and taxed at withdrawal. Some plans have Roth options in which the account is funded with after-tax dollars and no tax is paid at withdrawal.
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November 8, 2023
IRAs (individual retirement accounts) are tax-preferred investment accounts intended for retirement savings. Roth and Traditional IRAs both benefit from not paying taxes on gains when realized, but they differ in when they are taxed.
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September 15, 2023
One of the greatest ways we can add value to our clients is by removing the emotional aspect from investment decisions. Our team has successfully guided numerous entrepreneurs/families through some of the most significant monetary events in their lifetime. Helping clients prosper in a new phase of life is one of our strengths.
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September 15, 2023
The Secure Act 2.0 was signed into legislation on December 29, 2022 – with the goal of improving retirement savings options in the United States. And while the bill contains over 90 provisions designed to help Americans strengthen their financial security, we’ve identified the key provisions for individuals in this cheat sheet.
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July 3, 2024
Exposure to innovative and transformative biotechnology companies has been a part of Pinnacle’s SMID investment strategy since our portfolio’s inception in 1996. Without a doubt, some of our most successful investments have come from this industry. Surprisingly, we have learned over the years that most investment managers avoid biotech stocks due to the inherent binary risks that come with drug development. We wanted to discuss why we think that the opportunity set is constructive.
Read MoreRead MoreWatch NowFounded in 1984, Pinnacle Associates, Ltd. is a forward thinking, multi-billion dollar investment advisory firm focused on transparency and putting clients first. We provide advice to individuals and families, institutional investors and other financial institutions.
