Fact Sheets
2025
2025
It was a bruising quarter for stocks, which posted their worst quarter since 2022. As investors assessed the potential US economic impact of new tariffs on some of our largest trading partners, many economists lowered their global growth estimates, citing spillover effects from US trade policies. Also, as inflation measures remained stubbornly above the Fed’s 2% target, investor concerns increased about potential stagflation, an environment characterized by stagnant economic growth and rising inflation.
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2025
2025
We have to admit we are disappointed to have been caught offsides by the tariff chaos at the end of the quarter. We had used some of the volatility throughout the month to add to our retail (Shoe Carnival) and industrial (Allient, Helios Technologies) positions, but these did not hold up in the weakness near quarter-end. Fears about tariffs, economic contraction, and sweeping changes in the Federal Government rocked all but the most conservative holdings. We like the overall composition of the portfolio, but the Administration’s by zantine tariff proposals are forcing all equity investors to extend our investment horizon.
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2025
2025
Stock indexes went from bad to worse in March, as growing trade uncertainty weighed on stock prices. While stocks were weak in February as the post-election euphoria ebbed, March saw intensifying worries over President Trump’s prospective tariff policies, sticky inflation,spiking layoff announcements in the public and private sector and weakening consumer sentiment surveys.
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2025
2025
The energy sector has traditionally been a challenging sector to buy and hold due to its unpredictable/vicious cyclicality. Forward earnings projections have generally been considered less predictable than those for other sectors due to volatile commodity prices, a lack of fiscal discipline among producers (and the investors who fund them), OPEC’s attempts at price manipulation, and environmental concerns. These factors contribute to a very challenging sector for institutional investors.
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2025
2025
The post-election investor excitement for the prospect of pro-growth, pro-business policies from the new Trump Administration ebbed in February, in light of growing uncertainties related to the President’s threat of tariffs, worries over stubborn inflation and a possible slowdown in economic activity.
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2025
2025
On a relative basis, the SCV portfolio rebounded nicely in February after declining on the DeepSeek news in late January. We’ve spoken in the past about how the SCV portfolio tends to underperform in lower quality or momentum driven markets due to its value bias but typically performs well in down markets.
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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.
