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

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.

Pacific Wealth Management Market Comment

January 7, 2014

With the holidays behind us, 2013 will likely go into the books as one of the most extraordinary years in the history of the capital markets.  Despite a tepidly growing U.S. economy and corporate profits increasing by only 3%, the stock market finished up around 30% last year.  Stock market appreciation of this magnitude usually […]

Read the full article →


December 5, 2013

DEL MAR, CA, December 5, 2013 – Pacific Wealth Management®, an independent boutique wealth management firm providing investment management services to preserve and grow wealth, is pleased to announce another successful and well attended National Multiple Sclerosis Society Dinner Gala Auction that was held on November 23.  This 27th Annual MS Dinner Auction raised more […]

Read the full article →


December 4, 2013

DEL MAR, CA, December 4, 2013 – Pacific Wealth Management®, an independent boutique wealth management firm that provides investment management services to preserve and grow wealth, today announced that Justin C. Kuntz has joined the firm as Wealth Advisor.  With the firm continuing to grow, Mr. Kuntz will be expanding Pacific Wealth Management’s retirement planning […]

Read the full article →

More to Life – Rethinking Retirement

October 9, 2013

It was great to see such a good turnout for Pacific Wealth Management’s latest More to Life Event on Saturday.  Acclaimed Del Mar psychologist, Dr. Richard Levak, presented a thought-provoking discussion on “Rethinking Retirement”.  As more of the baby boom generation enters retirement or contemplates a retirement date in the years ahead, Dr. Levak offered […]

Read the full article →

Pacific Wealth Management Market Comment

May 15, 2013

The financial markets have been showing signs of increasing volatility over the last month.  This is hardly surprising, given the near vertical five-month rally in stocks since mid-November. The run-up in stock prices is directly attributable to the continuing and unprecedented levels of government bond purchases by the central banks of the developed countries around […]

Read the full article →

Market Comment from Pacific Wealth Management

March 22, 2013

As 2012 fades into the memory banks, the financial markets of 2013 are beginning the year in a very similar fashion to last year.  Despite estimates for the U.S. economy to grow at a tepid 2% pace, along with a deepening European recession, stock markets around the world are off to a very optimistic start […]

Read the full article →

What to make of the markets in 2013?

February 11, 2013

Despite tepid GDP growth in the U.S. of around 2% (compared to the long-term average of around 3 ½%), along with a recession in the UK and most of Europe, this year’s stock markets have rallied to multiyear highs. We believe these strong markets are being driven by the U.S. Federal Reserve Bank’s continuing policy […]

Read the full article →

The Taxpayer Relief Act of 2012

January 4, 2013

The fiscal cliff compromise extends the majority of tax cuts that were scheduled to expire at the end of 2012, in addition to retroactively reinstating some rules that had expired in 2011. The legislation also introduces a number of changes including a new top tax bracket of 39.6%, and an increase in the top long-term […]

Read the full article →