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COVID-19 Related Updates

Mind On My Money, Episode 37: Reid Davis' Three-Headed Dragon

On this episode of Mind on My Money, presented by Pinnacle Trust, Reid Davis, Pinnacle's Chief Investment Officer, joins Neal and Martin to discuss 2020's relevance (or lack thereof), debt markets, and the chaos of election years.

Pinnacle Trust Update Featuring Cris Dockery

On this Pinnacle Trust Update, Cris Dockery, vice president of Pinnacle Trust's corporate retirement plan division joins Martin to talk about what to do with old 401(k)s and options people under financial stress have with their current 401(k) in the times of Corona. Recorded Thursday, April 23, 2020.

Mind On My Money, Episode 33: Marcos Veremis Talks Economic Recovery

On this episode of Mind on My Money, presented by Pinnacle Trust, Marcos Veremis, former Managing Director for global investment consulting firm, Cambridge Associates, joins Neal McCready and Martin Palomo to talk the current economic situation, recovery, and the future of how we interact and do business.

Mind On My Money, Special Edition: Cooley and Carraway Talk Stimulus Money

On this special episode of Mind on My Money, presented by Pinnacle Trust, Jessica Cooley and Mike Carraway join Martin Palomo to talk details about the recently available Paycheck Protection Program (PPP), income tax updates, and the Stimulus checks.

Mind On My Money, Episode 32: Jarrett Little Talks Business Relief Strategies

PLEASE PARDON our 15 second technical glitch at the 12 minute mark. On this episode of Mind on My Money, presented by Pinnacle Trust, Jarrett Little, business reorganization and bankruptcy attorney, joins Neal McCready and Martin Palomo to discuss the CARES Act and the relief it provides to small business owners. He also discusses strategies to reorganize your business if it is in trouble, and what the steps are if you need the protection of bankruptcy.

Mind On My Money, Episode 30: Dr. Alan Jones Talks Virus Update

On this episode of Mind on My Money, presented by Pinnacle Trust, Dr Alan Jones, Chair of Emergency Medicine for the University of Mississippi Medical Center joins Neal McCready and Martin Palomo to give us a very sobering update on COVID-19.

Pinnacle Trust Investment Update 3.27.2020

Pinnacle Trust's Chief Investment Officer, Reid Davis, and senior investment officer, Martin Palomo, discuss the Coronavirus Relief Bill, stock market surge, and bond market normalization. Information continues to change at the speed of light. Recorded March 27, 2020 at 2:15 PM.

Mind On My Money, Episode 29: Martin and Neal Talk Stimulus

On this episode of Mind on My Money, presented by Pinnacle Trust, Neal McCready and Martin Palomo discuss the latest proposed federal coronavirus stimulus bill, the breakneck speeds of the markets, and possible recovery of sick Americans and the economy. Recorded March 25, 2020 at 2:15 PM

Pinnacle Trust Investment Update 3.24.2020

Pinnacle Trust Senior Investment Officer, Martin Palomo,  and Chief Investment Officer, Reid Davis, discuss markets and portfolio changes for Pinnacle Trust clients. Recorded on March 24, 2020.

Pinnacle Trust Market and Portfolio update


From a Fundamental perspective, the U.S. stock market is currently trading around a 13.5 Forward Price/Earnings multiple. This is down from an 18.5 Forward P/E just a few weeks ago (the 25-year average is roughly 16.3). From first glance, this indicates that we are already significantly undervalued, which is not necessarily true. It is difficult to price in the forward impact of the Coronavirus on earnings. The modern economy is certainly in unchartered territories.

It is still yet to be determined what will cause more destruction: the virus itself or the fear of the virus on the economy. If the earnings revisions are modest to the downside (10-20%) over the next 6-12 months, this correction is already very overblown. If corporate America significantly lowers (30-40%) the 2020 earnings outlook, then we may still be trading at valuations above historical norms. 

On a purely fundamental basis, the market could go lower before we get below the true fair value.  From an action standpoint, while there are specific opportunities (specifically quality, dividend paying stocks at a discount), it isn’t quite time to go on a full market shopping spree. We have rebalanced portfolios during the decline to execute the buy low (buy stocks), sell high (sell bonds and alternatives). We also sold some additional positions (mentioned in sections below) and kept the cash uninvested to accelerate the recovery of our portfolios.

Fixed Income

We began the process of de-risking the bond portfolio more as the high-yield space is facing some serious headwinds over the next several quarters. This was expressed by a rotation to core fixed income and overweight in the strategic income opportunities fund, which is approximately 50% cash. The municipal markets were hurt more than the corporate bond market in the last 4 weeks. There is a supply issue in the muni market because demand is not there…the trading costs have increased significantly.


The Alternatives portfolios have performed well relative to their stock and bond counterparts. We took the opportunity to rebalance the alternative portfolios to better reflect the larger portfolio and harvested some cash to approximately 25% of the portfolio. We expect to deploy the cash to stocks in the event of continued deterioration.

Income Builder

Changes included the re-inclusion of the strategic income opportunities fund to offset volatility in the fixed income (mostly higher yielding) portion of the underlying managers. We de-risked the portfolio by adding it as a 30% holding.