Our Mid-Year 2019 Economic Update

By Jeff Gilbert

Now that we are well into 2019, it’s time to take a look around at the economy. Despite the shaky start to the year, things are looking up! Here’s a quick overview to get you up to speed.  

Good Market Days

So far, 2019 has been a breath of fresh air for investors, who got the wind knocked out of them at the end of 2018. Not only have markets managed to recover from the tailspin that started at the end of September, but they have reached new highs. U.S. stocks were up 18.59% after the first four months of the year. (1)

While there were many factors that led to the market drop last year, two big ones were uncertainty over trade talks between the U.S. and China and fear that the Fed would continue to raise interest rates. Though still not solved, relations with China have improved greatly, leaving investors optimistic. The Fed also announced that they would halt rate hikes at the beginning of the year, paving the way for the impressive gains that we have seen thus far in 2019.

Employment Keeps Going Strong

The economy has also been bolstered by a continually tight labor market. Unemployment rates continue to hover near 50-year lows. This means that employers are having to increasingly compete for talent, which has pushed wages higher. Hourly wages are up 3.2%, (2) which is good for workers but will lower profit margins for businesses.

There was a moment of worry when the February jobs report was released with appallingly low numbers. However, fears were allayed with the March jobs report that exceeded expectations. Overall, the labor market remains robust, with slower job growth due more to a lack of qualified workers than anything else. (3)

GDP Is Growing

Gross domestic product (GDP), which measures our nation’s economic output, continues to grow. While there has been concern that the rate of growth is slowing down, first quarter GDP surprised analysts by growing at an annualized rate of 3.2%. (4)

The Fed Got Out Of The Way

Both the stock market and the economy owe some of their current success to the Federal Reserve. The Fed has been helpful not because of what they have done, but because of what they haven’t done.

After five successive quarters of rate hikes, the Fed finally pushed pause in March. Instead of continuing to raise rates, they indicated that they will hold off for 2019 to see what happens with the economy. This was enough to renew investor confidence and drive the impressive stock market gains that we have seen so far this year.

The World Isn’t Too Far Behind

While the U.S. economy continues to chug along, the rest of the world isn’t doing too bad either. There were concerns that China, the world’s second largest economy, was slowing, but some strategic moves by the Chinese government and a surge of industrial production led to better-than-expected GDP growth of 6.4% for them in the first quarter. (5)

Brexit is still a thorn in Europe’s side, as it seems the British government cannot agree on an exit plan. However, the negative economic effects have been minimal so far, especially with regards to the stock market. Thanks to continued growth worldwide, the MSCI All Country World Index is up over 15% so far this year. (6)

But It Can’t Last Forever

There is no doubt that we are now in the late-cycle phase of the expansion. Several months ago there was a real fear that the end was here, but concerns over a global recession have lessened. While we are seeing slowing in some quarters, the underlying economic fundamentals remain strong. We may be near the end of this expansion, but it’s still quite possible that this ending could last for several more prosperous years.

How We Can Help

You may be breathing a sigh of relief after reading these optimistic updates, but what’s more important than how the overall economy is doing is how your personal financial situation is doing. If your financial plan needs some attention or you want to take advantage of our current market cycle, we at Balboa Wealth Partners can help. Call me today at 949-445-1465 or email me at jgilbert@balboawealth.com to plan your path to financial independence.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) http://news.morningstar.com/index/indexreturn.html

(2) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-8-2019/

(3) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-8-2019/

(4) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-29-2019/

(5) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-22-2019/

(6) http://news.morningstar.com/index/indexreturn.html

We’re Never Too Busy To Help Someone You Care About

By Jeff Gilbert

What are the most important things in your life? Family? Health? A sense of purpose? While money may not top that list, it affects every part of your life and can give you the security and stability that positively impacts the things that matter most. But because of its far-reaching impact, managing money often leads to stress and worry. That’s why an advisor plays one of the most prominent roles in a person’s life, forming a long-lasting relationship and providing trusted counsel.

But how do you find an advisor who you can trust and want to work with for the long term? At Balboa Wealth Partners, we understand that this is an overwhelming and intimidating process. Trusting someone with your hard-earned money is not a decision you should take lightly. Knowing this, we are honored to have the opportunity to continue serving more and more families and individuals who conscientiously choose to place their finances in our hands.

We place the utmost value on our clients, and we greatly appreciate the opportunity to serve the important people in their lives as well. We gladly welcome the chance to connect and get to know new clients who may benefit from the services we provide. Your referrals are the highest compliment and an integral part of our continued growth.

The Balboa Wealth Difference

We’ve been fortunate to work with a wide range of clients who do refer their friends and family to us. We believe so many people have referred others to us for a few different reasons:

  1. A personalized approach. We know that no two individuals’ financial planning needs will be the same, which is why we create a plan focused on your financial goals. We take the time to outline a tailored strategy based on your specific needs, goals, and circumstances.
  2. Strong relationships. We prioritize a hands-on client-centered approach, which has led us to build long-lasting relationships with so many of our clients. We’re proud to serve as a go-to resource and support system when someone faces a tough decision or goes through a life transition.
  3. A dedicated team. With a diverse team of experienced professionals who maintain a high-touch and personalized experience, we seek to serve as our clients’ most trusted financial consultant and help them make smart decisions with their money. By having a dedicated team of experts on your side, we hope you can feel more confident as you navigate life’s challenges and planning opportunities.

The People We Serve Best

At Balboa Wealth Partners, we desire to take away your fear and anxiety and help carry your financial burden. Because we like to form trusted and close relationships with our clients, we strive to work with people we believe we can best serve. We specialize in serving ultra-high-net-worth individuals who require customized strategies for their unique challenges.

Our advisors specialize in overseeing your financial affairs and coordinating the day-to-day execution of your long-term financial plans. We deliver high-touch, responsive service strategically paired with access to institutional-caliber investment expertise in a way that eliminates conflicts, reduces fees, and opens the doors to truly comprehensive planning and reporting.

Do You Know Someone Who Could Benefit From Our Services?

One of the reasons we work with a select number of clients is so we can provide personalized attention and care to each of our clients as well as their loved ones. When you have questions about your portfolio or strategies, we’re here to help. When you experience a new milestone in life, we’re here to help. And if you have a friend or family member who has questions or needs unbiased advice, we’re never too busy to help.

If you’re a client with our firm and you’ve enjoyed working with us, we hope you’ll refer a friend, colleague, or family member who may benefit from our services. For a no-obligation consultation, please forward this article to them and have them contact us at 949-445-1465 or jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.