Pinnacle's Investment Committee Summary - Q3 2026

Executive Summary

Pinnacle's Investment Committee continues to maintain a modest overweight to equities, with a preference for U.S. and an underweight to developed Europe. Within U.S. equities, we continue to see relative opportunity in mid-cap companies, where forward valuations remain more attractive than the broader largecap market.

Within fixed income, we remain shorter duration than the broad Aggregate benchmark and continue to utilize floating-rate exposure while waiting for what we believe could be a more attractive opportunity to add duration. Should the 10-year Treasury yield move toward approximately 5.50%, we would expect to reassess our floating-rate exposure and potentially increase allocations to core fixed income with an improved asymmetric risk/return profile.

Despite heightened geopolitical uncertainty, disruptions to global energy markets, and renewed inflationary pressures, the underlying U.S. economic environment remains relatively resilient. Corporate profitability and capital investment remain strong, while consumer spending - particularly among higher-income households - continues to provide support for economic growth.