Pacific Wealth Management Market Comment

by Jim Kuntz on April 23, 2014

In 2013, we saw a wide range of investment returns across the financial markets. While U.S. stocks soared, international stock markets were mixed. Many bond investments last year were down modestly, though our Pacific Wealth Management portfolios enjoyed positive returns from some of our multi-sector bond funds. However, negative performance in commodity and precious metals did adversely affect portfolio returns.

After the extraordinary stock market returns of 2013, the financial markets are behaving a bit more nervously this year. The outsized stock gains last year were the direct result of our U.S. Federal Reserve Bank’s indefinite Zero Interest Rate Policy, despite an American economy that grew at a tepid 1.9%** pace. In January, the “Feds” finally began to reduce their controversial monthly U.S. Government Bond purchases, in which our stock market’s appreciation had become so dependent. This third round of bond market manipulation began in September, 2012 with $85 Billion/month of bond buying and continued through December of last year. It is not surprising the markets are experiencing some digestion challenges as the “Feds” are paring back the amount of monthly purchases to $75 Billion in January, $65 Billion in February, and $55 Billion in March. Ben Bernanke’s successor, Janet Yellen, has indicated she intends to continue these reductions in bond buying and have them completely eliminated before year end.

Although Vladimir Putin’s exploits in Crimea/Ukraine may have some long term consequences, particularly for Europe, the near term economic implications for the global economy appear minimal at this time. It does not look like the “West” has the political will to do much about it, as Europe’s economies remain very reliant on Russia for a large percentage of their energy needs.

Pacific Wealth Management investment portfolios remain conservatively invested with lower than average stock market allocations to reduce risk.   We are optimistic our strategic diversification will effectively weather today’s choppy markets. The roller coaster ride we have experienced in the financial markets over the first few months of 2014 are likely to continue throughout most of the year. If the U. S. economy stumbles, our central bank appears willing to return to the bond buying table and continue the “easy money” policies they have embraced over the last 5 years.

We are looking forward to our upcoming annual client dinner on April 29th at the San Diego Air and Space Museum. This year’s event will be special, as we dine alongside and celebrate one of the finest collections of aviation and space history in the world.

**Source: The Conference Board http://www.conference-board.org/data/usforecast.cfm

Pacific Wealth Management’s James Kuntz is once again named one of San Diego’s Top Wealth Advisors.

Online PR News – 27-March-2014 –James Kuntz, CIMA®, Managing Director of Pacific Wealth Management®, an independent boutique wealth management firm that provides investment management services to preserve and grow wealth, once again, has been named a Five Star Wealth Manager by San Diego Magazine.

Criteria for inclusion is rigorous and thorough, and includes rankings on industry-recognized lists, number of clients served/client retention, educational background and professional designations, assets under management, professional longevity, regulatory review, and impact his services have made on clients.

“For over 30 years I have watched Jim tirelessly work with his clients to help them achieve their financial goals so it is no surprise to me that he should be recognized in this manner,” said Mark Hill, CFP, CDFA, Managing Director of Pacific Wealth Management, and Kuntz’s partner. “We are extremely proud of his achievement.”

Kuntz and his family live in the North County Coastal area of San Diego, CA.

The partners, Kuntz and Hill, formed Pacific Wealth Management in 1998 to help high-net worth individuals, families, corporations and foundations preserve and grow wealth. The firm utilizes Proactive Asset Management™, a proprietary asset management system in which risks are continuously evaluated and assets are actively managed to achieve optimum results. This model has benefitted clients even during the most tumultuous market situations.

Financial Planning and Investment advisory services offered through Pacific Wealth Management, LLC, Registered Investment Advisor. Securities offered through Girard Securities, Inc., Member FINRA, SIPC. Pacific Wealth Management, LLC and Girard Securities, Inc. are not affiliated.

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