Life Advice for New College Graduates - pinnacleadvisory.com · Life Advice for New College Graduates PINNACLEQUARTERLY Pinnacle Wealth Managers Sauro Locatelli REITs Finally Get

Q4 2016

Life Advice for NewCollege Graduates

PINNACLEQUARTERLY

Pinnacle Wealth Managers

Sauro Locatelli

REITs Finally Get TheirOwn Space

Michael Green

College Financial Aid JustGot Easier

Q3 Market ReviewA Low Conviction World

Page 1Pinnacleadvisory.comQ4 2016

6345 Woodside Court

Suite 100

Columbia, Maryland 21046

410.995.6630

410.505.0960 Fax

5150 North Tamiami Trail

Suite 500

Naples, Florida 34103

239.692.8888

239.692.8878 Fax

7355 SW 87th Avenue

Suite 300

Miami, Florida 33173

305.274.1600

Q4 2016

MARYLAND

FLORIDA

Table of Contents

College Financial Aid Just GotEasierMichael Green

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Life Advice for A New CollegeGraduatePinnacle Wealth Managers

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A Low Conviction World: Q3 MarketReviewRick Vollaro, Carl Noble, Sean Dillon,Sauro Locatelli

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REITs Finally Get Their Own SpaceSauro Locatelli

7


Life Advice for A New CollegeGraduate

Pinnacle Wealth Managers help clients at every stageof life—fromyouth to retirement. Earlier this summer,we asked ourWealthManagers what financial advicetheywould give a recent graduate. Thismonth, we’veasked them to offer one piece of general life advice—what do they wish they’d been told when they wereyoung?

Here are their responses.

Pinnacle WealthManagers


Take Responsibility For Your Life

Develop a sense of ownership. This refers to account-ability for your own quality of life and satisfaction.Your collegeyearsprobably followedaclearlydefinedpath.Now,no longer insulated in an academic setting,you will need to make many meaningful decisionsyourself. Ask questions, seek out advice from thoseyou respect, andquestion conventionalwisdomwhenit does not ring true to you. In doing these things, youwill carve out your ownpath—onebest suited for you.

Michael Green

Take Risks

Don’t be afraid to take some risk while you’re young.Try a few different jobs in your 20s or early 30s, if youare undecided on your career path. Try to determinejust where your interests lie, and then narrow downpossible career paths based on your interests.

Andy Krone

When you’re 21, it seems like everything is a big deal.Don’t worry, it’s really not. As an extension of that,don’t be afraid to change your employment situationin your 20s: This is the perfect time to find out whatkindof job, company,or industry is theright fit foryou.

Carrie Beren

Remember that “a horse neverwona race that it didn’tenter.” Don’t be afraid to take some risks. And if youwant to start your own business, find a way to do it.

Deb Kriebel

Own Up

Be accountable for your actions.When youmakemis-takes, apologize and do everything you can to makeamends. Try to determine what caused the mistake,and do everything you can to avoid repeating it. Andforgive yourself.

Jake Mason

Find Balance

Life is about balance. It is important to work hard—especially in the early years of your career—but try toremember to find a balance where you can still enjoylife. “Work Hard/Play Hard” is a goodmotto to keepin mind.

Jeff Troll


Do What You Love

Do what you love, and the money will follow. In themeantime, do whatever you can to make ends meetwhile you keep working at the thing you love.

Carol Harlow

Try to find a career that you enjoy. If you can find a jobthat combineswhat you lovewith away tomakemon-ey, that is great. If you can’t do that, find somethingthat youat least like and continuedoingwhat you loveas a hobby.

Jeff Troll

Explorewhat youwant to do now,while you’re singleand less encumbered. Once you’re married with kids,you’re no longer able to be as flexible.

David Kauffman

Don’t Let Others Live Through You

The thing that I wish I could have told myself when Iwas 21 is to stop worrying about what anyone elsethinks and just go afterwhat you reallywant in life.Dowhat will give you the most long-term happiness. Iself-sabotagedmanyopportunities becauseof a fear ofrejection and low self-confidence. To paraphrase AynRand,never live for the sakeof anotherperson, nor askanother person to live for yours.

Stephen Wright


College Financial Aid JustGot Easier

In late 2015, new ruleswere established for the collegefinancial aid application process. With these rules be-coming effective this month, we should assess the im-pact theywill have, particularly for families seeking tofund their children’s education.

In the past, the Free Application for Federal StudentAid (FAFSA) formwasmadeavailable in Januaryeachyear.Due inFebruary, theFAFSAformwascompletedwith information from the “prior tax year” (PY). Thus,for a student enteringcollege in the fall of 2016,parentshad to complete their 2015 tax return as soon as possi-ble after January 1st, and then use the informationfrom that tax year to apply for financial aid.

Michael GreenWealth Manager


Thenew rule changes have nowmade the forms avail-able in October, and allow for their completion on thebasis of what is referred to as the “prior-prioryear” (PPY). In this arrangement, the financial aid ap-plication for a student entering in the fall of 2017 canbecompleted on the basis of the 2015 (rather than 2016)tax return, and can be submitted as early as October2016.

This is good news for families, who benefit in threeways:

StreamlinedDataRetrieval:Because of the allowanceof PPY financial information, applicants can take ad-vantageof the IRSDataRetrievalTool—an instrumentthrough which income tax data can be pulled directlyfrom the IRS into the FAFSA form—making the com-pletion of the form much easier.

FrontEndTiming:Under thenewrules, completionoftax returns and FAFSA forms are de-coupled. Thismeansparentsno longerhave to rush to complete theirtax returns, or estimate their income inorder to submita timely FAFSA form. They can instead rely on thepreviously completed PPY return. Further, the finan-cial aid application process can now be completed inconjunctionwith the college application process itself.

BackEndTiming:Since financial aid applicationswillnowbe submittedearlier, awardnotificationswill alsobe released earlier by the majority of schools. In addi-tion, some schools may also start providing admis-sionsnotificationsearlier than in thepast.Familieswillhave critical information in hand much sooner thanwas previously the case, giving themmore time to as-sess the financial implications of their choice of school.

With 2016 being the transitional year for movementfrom the old rules to new, parents should try to applyfor financial aid as soon as possible after October 1st,since someschoolsoffer aidona first come, first servedbasis, and fundsmay be depleted by the time later ap-plications are received. Looking ahead for those withyounger children, they should also note the need un-der the new admissions cycle to generate their list ofdesired colleges sooner (i.e., junior year) rather thanlater (i.e., fall of senior year).

At Pinnacle, we have the resources to help you benefitfrom not only this year’s new financial aid landscape,but other relevant strategies through the course ofyour child’s college career and beyond. Should youhave any questions in relation to educational funding,be sure to consult your financial advisor.

Michael Green, CFP®, CTFA, JD, CCPS™, ELA®is a Wealth Manager for Pinnacle Advisory Group

Email: [email protected]: pinnacleadvisory.com/mgreen/


REITS Finally Get Their Own SpaceOnSeptember 19, 2016, S&PDowJones andMSCI, Inc.added a sector for Real Estate. Up to this point, REITshave traditionally been considereda sub-industry andpart of the Financial sector, but as of the market closeonAugust 31, 2016 (and effective September 19, 2016),theywere split from the Financial sector andmoved totheir own sector (with the exception of Mortgage RE-ITs). This should not be a surprise for investors, as thechange had been announced by index providers, S&PDow Jones Indices and MSCI, back in March 2015.

What Are REITs?

UnderU.S. Federal income tax law, aREIT is “any cor-poration, trustorassociation that acts asan investmentagent specializing in real estate and real estate mort-gages.” Therefore, aREIT is a company that owns, andin most cases operates, income-producing real estate.REITsownmanytypesofcommercial real estate, rang-ing from office and apartment buildings towarehous-es, hospitals, shopping centers, hotels and even tim-berlands.

Created by the U.S. Congress in 1960, REITs were de-signed to provide a real estate investment structuresimilar to the structure mutual funds provide for in-vestment in stocks. As such, they provide investorswith a convenient and liquid way to invest in real es-tate. Because a REIT is entitled to deduct dividendspaid to its investors, it may avoid incurring all or part

of its liabilities for U.S. federal income tax—the pur-pose is to avoid double taxation of the income pro-duced by the underlying properties.

In return, REITs are required to distribute at least 90%of their taxable incomeinto thehandsof investors.Thismakes REITs particularly interesting for income-ori-ented investorsandhascontributedto theirpopularityin recent years. The behavior of REITs in terms of re-turns and volatility tends to fall somewhere in be-tween stocks and bonds; their focus on income putsthem in somewhat direct competition with fixed in-come instruments, which means they tend to benefitfrom falling interest rates. However, since the incomethey produce is derived from real assets, REITs canalso provide a good hedge against inflation.

Why are REITs becoming a sector?

Back in 2001, REITs represented about 0.11% of themarket capitalizationof theS&P500 index.Today, thatfigure has grown to approximately 3%.While 3%maynot sound like much, it is roughly comparable to thesize of three other sectors of the S&P500 index, specifi-cally Utilities, Materials, and Telecommunications.The decision to promote REITs to sector status is astrong indication that REITs are very grown up. In-dices are supposed to reflect the composition of theeconomy, and REITs are now a big part of it.

Sauro Locatelli, CFA, FRM™ is Director ofQuantitative Research at Pinnacle Advisory Group.

Email: [email protected]: pinnacleadvisory.com/slocatelli/


The third quarter was a fairly placid one for investors, thoughtherewasmajor diversity in return profiles depending onwhatasset class, sector, or countryonewas invested in. In theU.S., theleading sector was clearly technology stocks, while elsewhere,Japan, Emerging Markets, and European stocks also had posi-tivereturns for thequarter.Within fixed income, thebroadbondmarket indices slowed down and posted flat returns, thoughcredit related sectors performed well along with other risk as-sets. Commodities brought up the rear in the third quarter, asthey cooled off from their torrid run in the first half of the year.Summing it up, returns by asset class were mixed, but mostinvestors in globally diversified portfolios enjoyed modestgains during the period.

With the third quarter in the books, the focus now turns to as-sessing prospects for the fourth quarter and beyond.

Rick Vollaro

Chief Investment

Officer

Carl Noble

Senior Analyst

Sean Dillon

Technical Analyst

Sauro Locatelli

Quantitative Analyst

MARKET REVIEW


Global Economics Misfiring

Economic growth in the U.S. has been frustratinglyslow, averaging an anemic 1% during the first half of2016. While the third quarter showed some earlypromise of a second half pickup, momentum fadedtowards theendof thequarter. Thegoodnews fornowis that the U.S. consumer appears to be in good shape,job growth has held up, and both interest rates andinflationarehistorically subdued.Thebadnews is thatconsumers still appear cautious about spending, andbusinesses don’t seem confident enough in the futureto invest given the lack of top line revenue growth andearnings that remain under pressure.

To add fuel to the fire, world trade continues to strug-gle in a growth-starvedworld, and it’s hard to believethat exports will accelerate, considering that our trad-ing partners are facingmany of the same challenges aswe are here. The bottom line is that we appear to bestuck in anoddzone,where theU.S. economy isgrind-ing forward, but at very low levels of growth.

From a global perspective, the developed world hasalso been mired in what feels like a perpetual slump.Japan has flat lined, Europe is hovering around 1.5%levels of growth, and while emerging markets havestabilized with commodity prices, many are also lev-ered to exports that aredependent on stagnant growthwithin the developed world.

One of the recent positive surprises in the global econ-omy has been that the British exit (Brexit) from theEuropeanUnion has showed few signs of creating thekind of debilitating blow to world growth that somehad feared just a quarter or so ago. In the short timesince the vote,markets and economic data in theUnit-ed Kingdom seem to be holding firm on the back of aweaker currency andvery little change in business dy-namics. This benign outcome clearly could changeover coming quarters as Brexit negotiations moveahead, but it doesn’t appear to be on the verge of drag-ging Europe into another recession at the moment.

Ever since theGreatRecession, a lowgrowthbackdropseems more the rule and less the exception. The goodnews is that lowgrowthdoesn’t have to be catastroph-ic for markets, and can even provide a sweet spot forrisk assetswhen combinedwith enough liquidity. Butthe flipside of a very low growth backdrop is that itleaves little margin for error.

DiminishingReturns&TacticalAdjustments

With very little support from global economic trends,markets continue to rely on substantial amounts ofglobalpolicy stimulus to fill thevoid.Globalmonetarypolicy has had the effect of lifting asset markets tovarying degrees since 2009. However, there are a fewwrinkles at this juncture that may keep investors onthe edge of their seats in coming months.

The first comes fromaU.S.monetarypolicy stance thatseems to be leaning towards another increase in inter-est rates before the end of the year.One reason that theU.S. Federal Reserve (Fed) may raise rates is that theunemployment rate has fallen lowenough to convincethem that there is little slack left in the labor marketafter seven years of economic expansion. On the otherhand, the inflation picture in the U.S. is much moremixed, with some of the Fed’s preferred measures ofinflation still well below the 2% level that would helpsatisfy their mandate for price stability.

Curiously, at the same time that the Fed is angling to-wardsanothermarginal increase inshort-terminterestrates, they have also been downgrading their futureassessment of growth and their anticipated endinglevel for short-term rates during this tightening cycle.

One of the current conundrums forinvestors is that most estimates oflong-term valuations don’t lookparticularly attractive, especially forlarge cap U.S. stocks.


Recent forecasts by the Fed seem to acknowledge thattherearedeepstructuralproblems that exist in theU.S.and many world economies which should keep a lidon potential growth rates globally.

While this outlook appears to be in line with the frailgrowth conditions that we previously outlined, in-vestorsare left towonderwhythesameinstitution thatsees structural impediments to growth would be sofixated on raising rates later this year. Somewithin theFed may be worried that keeping policy ultra-accom-modative at this point will eventually lead to moredisruptive policies if they fall behind the curve andinflation takes hold. Others seem to be concernedabout managing policy with little to nomonetary bul-lets remaining in the chamber in the event that slowgrowth slides back into recession. Whatever the rea-son, the inconsistency in thinking by the Fed is puz-zling, and will likely keep investors on guard.

Outside theU.S., policy settings are a bitmore in sync,with most countries continuing to keep rates low tokeep money flowing so as to offset very subduedgrowth and inflation levels. The wrinkle here is thatpolicymakers appear to be questioning whether thelawofdiminishing returns is catchingupwith someofthe unorthodox policy measures they’ve previouslyapplied in an attempt to jumpstart growth.

For example, the negative interest rate policies thatJapan and Europe are using have created the unin-tended consequence of putting pressure on the bank-ing systems of both regions, and when the bankingsystem is broken there is little chance that growth canexpandas itnormallywould.Butcentralbankersdon’tgive up easily, and rather than simply abandoningthese extreme policy prescriptions, they have merelyadjusted their tactics instead.

Some financial professionals believe that the fiscal au-thorities may soon join their monetary brethren andengage in an alternative to quantitative easing thateconomists call “helicopter money.” In theory, this

would entail the monetary authorities permanentlyrunning the printing press to help finance growth in-ducing fiscal initiatives. The overall intention wouldbe to lift inflation expectations in order to encourageconsumers andbusinesses to spend today. Thehope isthat if consumers and businesses spend more, corpo-rate earnings would benefit, employment and wageswould rise, and a positive feedback loop and a virtu-ous economic cycle would evolve.

At the moment this vision of fiscal intervention ismostly speculation, and no one knowswhether it willcome to fruition, when it might be enacted, or howeffective it would actually be. But the idea can’t be ig-nored, and investors must now begin to contemplatewhether monetary financing of fiscal projects couldprovide the next wave of high powered money thatfinds its way into asset markets.

Seeking Value, Avoiding Value Traps

Economics andpolicy settings are important consider-ations that tend to drive cyclical moves in the market,but investors can never turn a blind eye to asset valua-tions. Valuation is not very useful as a market timingindicator, but it does give us important informationabout the margin of safety inherent in an investment,and it canalsohelp identifyacute riskandthepotentialfor outsized reward when valuation hits extreme lev-els in an asset class or a particular security.

One of the current conundrums for investors is thatmost estimates of long-termvaluationsdon’t lookpar-ticularly attractive, especially for large capU.S. stocks.For example, our models for the MSCI U.S. Index im-


ply five-year annualized returns of less than 4%, andthe ‘All Country World Index’ of global stocks is notmuch betterwith projected returns that are just slight-ly higher than the U.S.

We won’t argue that classic valuation measures forequities look expensive on the surface, but it’s impor-tant to note that aggregate index level readings canoften be deceiving since not all sectors and industriesare created equal. For instance, the low interest rateenvironment we’ve been in since the Great Recessionhas been forcing investors to chase higher yielding in-vestments, causing those sectors to look particularlyexpensive. One of those, Utilities, is forecasted to de-liver dismal five-year annualized returns of -2%, ac-cording to our models.

On the other hand, Financials have been out of favorgivenaperfect stormofheavyregulation, lowdemandfor loans, and a 0% interest rate environment that hascompressed net interest margins for many financialinstitutions. While they’ve underperformed recently,yesterday’s woes could be tomorrow’s spoils giventhat our models are projecting five-year returns ofnearly 7% annually.

Of course, we can’t knowwith certainty how long val-uation anomalies like this will last, but we can inferthatUtilitieshave likelydiscounteda lot ofgoodnews,and Financials have probably baked in a lot of prob-lems. Given this starting point, it seems prudent toprepare for the possibility that any negative newscould tip the balance for Utilities and create a poorfuture return profile, and similarly, if anything goesright for Financials they could be set up for dispropor-tionately higher relative returns. This is just one exam-ple of how looking beneath the surface can identifyreturnprofiles that differmaterially fromsector to sec-tor, and from a sector to the overall index. Similar dif-ferentials exist in other asset classes as well.

With lower than average return forecasts for mostbroadasset classes, investorswill be increasingly chal-lenged to decide between the values to own and thevalue traps to avoid in the coming years.

What is encouraging for us is that our investing pro-cess gives us the freedomand flexibility to avoid over-valued assets and rotate into assets where we believeattractive valuation has collided with an appropriatecatalyst tounlock that value over a cyclical time frame.


In a return-challenged world, the ability to identifyand rotate sectors, industries, countries, currencies,rate sensitivity, and credit may be a critical ingredientin generating future returns.

Investing In A Low Conviction World

Thecurrent investing landscape leavesus ina lowcon-viction environment, which mostly serves to keep usfromgetting overly bullish or bearish.Wewon’t arguethat thereare legitimate risks floatingaroundtheback-drop: World fundamentals are weak, an election yearis upon us, financials conditions are tightening mod-estly, and theFed is sending confusingmessages at thesame time the broad averages look expensive.

But despite downside risks to markets, there are alsoreasons thismarketmightdefy logic andmovehigher.For starters, a case could be made that the Februarylows represented the pivot point fromaglobal cyclicalbear market to a new cyclical leg up. If so, the bearmarket likelywashed away some of the prior compla-cencyand reset themarket’s cyclical timetable—there-

by refreshing valuations in certain sectors and indus-tries, as opposed to the overall index (at least in theU.S.).

The current backdrop also contains the prospect ofmore liquidity abroad, the specter of future fiscal eas-ing, and a pessimistic feeling amongst investors, all ofwhich could contribute to a market that continues toclimb a healthy wall of worry.

At times of low conviction,we don’t think it’s prudentto make big bets in allocation, which is why we havebeenslowlyedgingourportfolios towardsneutral lev-els of risk over the last few months. While we havebeen neutralizing volatility levels, we also continue tocarry some hedges, given the highly unusual back-drop and in case risk suddenly reappearswith today’scomputer driven markets.

Without abig allocationbet,muchofour risk-adjustedreturns will come from rotating within assets classesand avoiding asset classes that we believe are classicvalue traps.


Note: The preceding discussion applies to the management of Pinnacle’s Dynamic Prime models.

Below is a brief description of changes during the quarter to the Dynamic Market Series and the quantitative component of theDynamic Quant, which are rules-based strategies and thus are not managed according to Pinnacle’s macro outlook.

Dynamic Market Series

Therewere no changes in the allocation of theDynam-icMarket strategiesduring the thirdquarter.Thesatel-lite, comprising 30% of the portfolios, has remainedevenly split between stocks (i.e. the S&P500) andqual-ity bonds (i.e., the Barclays Aggregate Bond index)since April 21 of this year, when the technical compo-nent of the strategy switched from a “sell” signal to a“buy”signal for stocks.Thevaluationmodel for stockscontinues to sit in the overvalued zone, where it hasbeen since 2013. Until the model sees a material im-provement in valuation, the strategywill not allow thesatellite to increase its stock exposure above the cur-rent level, which represents a neutral allocation rela-tive to the benchmark. However, the strategymay de-creaseexposure tostocks if technical conditionsdeteri-orate enough to trigger a “sell” signal from the techni-cal component of the strategy, which is not somethingthat we expect to happen in the near term.

Both stocks and bonds delivered positive returns dur-ing the quarter, with stocks (+3.85%) outperformingbonds (+0.46%), which means the satellite had a posi-tive contribution to the return of the portfolios. Mean-while the strategic core, comprising 70% of the portfo-lios, also generated a positive return for the quarterand managed to outperform its benchmark, chieflythanks to positive contributions from the allocation toemergingmarkets andU.S. small andmid caps on theequity side, and U.S. high yield bonds and emergingbonds on the fixed income side.

Dynamic Quant Series

For the entire duration of the third quarter, the Dy-namicQuantitative strategymaintainedaneutral pos-ture, which means its satellite was fully invested instocksaccording to the sector rotation component. Thesector ranking of the strategy saw little change duringthe quarter, with only one trade occurring on August8th as the telecom sector was downgraded from mildoverweight to underweight, and was replaced in theportfolio by the consumer discretionary sector. Thetrade was caused by a rapid fall in momentum of thetelecom sector coupled with an improving valuationfor of the consumer discretionary sector. One addi-tional tradeoccurringonSeptember26thwasnotdriv-en by the model, but rather by the decision of S&P/Dow Jones andMSCI to create the new real estate sec-tor by separating REITs from the financial sector,which they hadbeenpart of historically. This requiredus to rebalance theportfolio accordingly,whichmeantreducing the allocation to the financial sector and in-vesting the proceeds in the next most attractive sectoraccording to the model, which was consumer discre-tionary. Beyond these relatively small changes in theallocation, the technology and financial sectors wereconsistentlyat the topof thesector ranking throughoutthe quarter, which means the satellite carried largeoveweights to these two sectors. The fact that both sec-tors outperformed the broad market during the quar-ter (technology more so than financials) was the maindriver of the strategy’s outperformance.


Pinnacle's Three Dynamic Strategies

Pinnacle’s Prime Series offers investors an array of ac-tivelymanaged portfolios that are globally diversifiedand designed to provide market-like returns with lessrisk. Our Prime Series is comprised of five distinct op-tions that include conservative portfolios that priori-tize stability and income, moderate portfolios seekinga balance of stability and growth, and growth portfo-lios designed for appreciation and growth.

ThePrimeSeriesportfoliosaremanagedbyourexperi-enced investment team to pursue value anywhere inthe world—in any asset class—and evaluate opportu-

nities using both qualitative judgment and quantita-tive tools. Our over-arching strategy is based on long-term economic themes where we build our portfoliosin line with the strengths and weaknesses in the mar-ket.Our investment teamevaluates thequalitative andquantitativedata andadjusts ourportfolios according-ly. These portfolios have beenmanaged by our invest-ment team since 2002 through all market cycles andhave a GIPS verified track-record. The Prime Seriesshould appeal to clients who want an active, tacticalmanagement strategy that blends the best of qualita-tive judgment and quantitative tools.

PRIME SERIES

Pinnacle’s Market Series provides an investor with aglobally diversified portfolio that is primarily man-agedwith strategic asset allocation and complimentedwith tactical management in a smaller portion of theportfolio. The strategic holdings are low cost and effi-cient, and the satellite portion provides a way for theportfolio to increase returnpotentialwhenmarkets arecheap, and dampen risk when markets are expensiveor volatility increases.

The series offers three portfolios to investors: Conser-vative,Moderate, andAppreciation. The strategic allo-

cation comprises 70%of theportfolio and isdiversifiedacross twelve asset classes that are systematically re-balanced to retain targeted allocations. The tactical al-location comprises 30% of the portfolio and consists ofU.S. stocks and fixed income securities. The tacticalsatellite includes the flexibility to move betweenstocks, bonds, or cash, and rotates between them de-pending on market valuations and technical condi-tions. By combining both strategic and tactical strate-gies, the Market Series offers the benefits of both pas-sive and active management.

MARKET SERIES

The Pinnacle Quantitative Portfolio provides investorswithanactivelymanagedportfolio thatusesa ‘CoreandSatellite’ approach to combine tactical asset manage-ment and quantitative analysis. The Core strategy in-vests approximately60%of theportfolio inourDynam-ic Moderate Growth model, which strikes a balancedapproach between capital appreciation and income.TheSatellitestrategycomprisesabout40%oftheportfo-lio and uses sophisticated quantitative analysis thatleveragesvalueandmomentumdataas it rotatesequitysectors, bonds, and cash to balance growth and risk.

Our proprietary quantitative model evaluates currentmarket conditions based on a set of valuation and tech-nical indicators, and rotates the allocation between tenU.S. equitysectorsandbondsorcash.Thisportfoliowillappeal to clients who are looking for a heavily rules-based approach to investing and are willing to makeaggressive allocation changes depending on marketconditions.

QUANTITATIVE SERIES

HEADQUARTERS6345 Woodside CourtSuite 100Columbia, MD [email protected]

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WEBSITEpinnacleadvisory.com

7355 SW 87 AvenueSuite 300Miami, FL 33173305.274.1600

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Life Advice for New College Graduates - pinnacleadvisory.com · Life Advice for New College Graduates PINNACLEQUARTERLY Pinnacle Wealth Managers Sauro Locatelli REITs Finally Get