Commentary and Research Papers
August 19, 2025
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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Commentary and Research Papers
August 19, 2025
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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August 19, 2025
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.
Read MoreRead MoreWatch NowFinancial Planning
August 19, 2025
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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August 19, 2025
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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August 19, 2025
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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Founded 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.
