The US service sector tumbled in Feburary to a four-year low thanks in part to a nasty winter.

The Institute for Supply Management (ISM) reported that its service index fell to 51.6 in February, down from its 54% January reading. Analysts had predicted a small drop to 53.5. This marks the 50th consecutive month of growth. A reading above 50 indicates the sector is expanding.

Warning: this is an in-depth review of the Pacific Choice Variable Annuity. Many annuity critics point to complexity as being a major negative for this asset class and Pacific Life doesn't dispel this criticism. The prospectus totals a voluminous 132 pages. So buckle up and let's dig in.

The annuity business has grown in popularity as investors, especially those nearing retirement, look for options to protect themselves from stock market volatility and give them a decent income stream in retirement. With over $200 billion in annual sales, the annuity industry is big business with lots of salesmen trying to persuade you to make a purchase.

"The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly." - Warren Buffett

In my 15 years as an investment adviser, I have reviewed many portfolios. Typically, these situations arise when engaging with a new client or reviewing a current client's funds outside of my advisement, e.g. 401(k). Sometimes, a prospective client asks me to perform a portfolio review like a patient seeks out a second opinion. Whatever the occasion, I enjoy the opportunity to look at another adviser's work which often provides insight into his/her investment philosophy, background, and approach. We work with a diverse clientele with widely varying investment needs and objectives. Whether the portfolio belongs to an individual, non-profit organization, or captive insurance company, there are recurring themes that I find and would handle differently. Here are four common portfolio mistakes that you should avoid.

January was a rough start of the year for the stock market with the Dow 30 down 5.5%. The headlines described the month as "brutal" and "horrific." As an individual investor, this can cause worry as one wonders, "Is this the start of the next bear market?"

The Dow Jones Industrial Average or the Dow 30 is one of the most watched US benchmarks. Created in 1896, investors have closely tracked its performance on a daily basis for more than a century. But is it still significant or is it in need of a reboot?

The US Securities and Exchange Commission ("SEC") provides several resources to help educate investors about the complex product of variable annuities. In fact, the SEC's Office of Investor Education and Advocacy recently published an Investor Bulletin entitled Variable Annuities—An Introduction. If you are thinking about purchasing an annuity, I encourage you to read the bulletin in its entirety as well as thoroughly read Variable Annuities: What You Should Know.

Last December a chart began circulating among Wall Street trading desks that draws parallels between the stock market crash of 1929 and today. This chart is obviously frightening as the market fell over 40% in one month back in 1929.Technician Tom DeMark first drew parallels with the 1928-1929 period last November. “Originally, I drew it for entertainment purposes only,” he said—but no longer: “Now it’s evolved into something more serious.”  According to DeMark, if the S&P decisively brakes the 1762 level then a major bear market will have only just begun.

On Wall Street, many people ask the question, "What is the 'smart money' doing?" I believe it makes sense to follow the best and brightest minds no matter what field you are in. So from time to time, we will take a look at the smart money in a series called Monday Moguls. If you don't want to miss out on the next one, please subscribe to our blog (directly to the right for desktop users or at the bottom of the page for mobile readers).

Regardless of the market cycle, financial pundits are constantly proclaiming a "stock picker's market," one in which active managers will shine. On the surface, this seems to make sense because no matter the direction of the broad market, there are usually certain stocks outperforming to the upside. Even in my personal experience, I have been witness to the significant rewards afforded to those who can identify and own a portfolio of great companies. There are, however, some alarming crosscurrents taking place in US public equities. Here are my observations.