DEL MAR, CA, May 20, 2016 – Pacific Wealth Management®, an independent wealth management firm providing intelligent solutions for affluent investors, today announced that Nicholas D. Castellano has joined the firm as a Financial Advisor.  With the firm continuing to grow, Mr. Castellano will be expanding Pacific Wealth Management’s retirement planning services for high-net-worth business owners and executives within the technology industry.

Mr. Castellano brings extensive financial advisory experience to Pacific Wealth Management in addition to a successful career serving our country in the U.S. Marine Corps.  Mr. Castellano will be working with the entire Pacific Wealth Management team to create personalized plans that preserve and grow wealth so clients can enjoy the lifestyle they desire, today and over the long term.

Founding partners, Mark Hill and Jim Kuntz, formed Pacific Wealth Management in 1998 to craft and execute highly disciplined wealth strategies for high-net worth individuals, families, corporations and foundations.  The firm’s meticulous approach to wealth management, along with their comprehensive financial planning services, help clients intelligently and effectively pursue their unique goals.

Financial Market Comment

by Jim Kuntz on February 29, 2016

As February winds to a close, the financial markets continue experiencing higher than normal levels of volatility. Since our last update in January, global stock markets have ridden a rollercoaster mostly tied to the ups and downs of oil and gas prices.

The significant decline in energy prices have certainly resulted in earnings setbacks for much of the oil and gas industry, which makes up 4.3% of the total United States economy. The large majority of rest of the American economy is benefiting from the lower cost of crude oil, gasoline, heating oil and jet fuel. As we mentioned in our letter last month, these lower energy prices will help spur growth and lessen the likelihood of recession in 2016. We have been encouraged to see recent improvement in consumer spending, broader credit growth, lower unemployment and positive wage growth. Additionally, the recent dramatic volatility in the markets has lessened the likelihood Janet Yellen will increase interest rates to the extent she had suggested in December.

On the other hand, the U.S. dollar’s continued strength has been a headwind to S&P 500 earnings. The move to negative interest rates by Japan and several Northern European countries, together with the nature of this year’s presidential election creates uncertainty. As we all know, financial markets dislike uncertainty. The beneficiaries of the recent volatility have been sovereign government bonds, and for the first time in several years, gold. This “flight to safety” has pushed U. S. 10 year Treasury yields lower and boosted gold prices.

The contradictory influences of these many factors, suggests to us that the financial markets are not yet out of the woods.

Low energy prices are already reducing oil industry spending. This historically has decreased supply, which is necessary before energy prices can stabilize and recover. Our research anticipates this occurring in the second half of the year. Future stability in energy prices will remove one of the major uncertainties and create a more benign environment for the markets. In a world where central bank policy is less accommodating and less potent, volatility is likely to remain above average throughout the first half of 2016.

Pacific Wealth Management investment portfolios remain very well diversified and built to effectively weather these volatile markets. Please feel free to call us if you have any questions or comments.

 

This commentary contains forward looking statements and opinions. These opinions may not develop as predicted. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

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DEL MAR, CA, November 25, 2014 – Pacific Wealth Management®, a Del Mar, CA-based independent wealth management firm providing investment management services to preserve and grow wealth, is pleased to announce another successful and sold-out National Multiple Sclerosis Society Dinner Gala Auction on November 22nd. This 28th Annual MS Dinner Auction raised more than $500,000 toward creating a world […]

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