Mitchell J. Fisher, CFP, President
As the stammering soon-to-be King starts to light a cigarette, his speech coach says: “Please don’t do that. I believe sucking smoke into your lungs will kill you.” The King replies: “My physicians say that it relaxes the throat.” Coach: “They’re idiots.” King: “They’ve all been knighted.” Coach: “Makes it official then.”
The winner of this year’s Oscar for best picture, and best actor Colin Firth, the “King’s Speech” is a marvelous portrayal of two men from very different worlds who become unlikely friends. Brilliantly acted by Jeremy Rush, Helena Bonham Carter, and Firth, this film evokes an array of emotions and life lessons.
The conflict in Libya has driven the price of oil skyward and temporarily upended the markets. Soaring gas prices have certainly made their mark on past recessions and should be a legitimate cause of concern. However, with the recent flow of positive employment, factory orders and corporate earnings numbers, the S&P 500 is up by 5.42% this year. The best growth sectors in 2011: Energy +14.9%, Industrials +6.2%, Technology +6.0%, and Healthcare +5.2%. Gold and silver have shined the brightest with precious metals gaining 40.2% in the last 52 weeks. Real Estate bounced up +30.9% this past year along with the most profitable styles being Small Cap Growth +31.3% and Mid Cap Growth +28.9%.
Need a job? The Governor of North Dakota, John Hoeven, announced on CNBC last week that his state has thousands of jobs available in both clean energy and the oil and gas industries. Another indicator of economic growth has been the doubling of initial public offerings in 2011…and the IPO for Facebook is still on the horizon. Apple CEO Steve Jobs made a rare public appearance to introduce a thinner, faster, and camera ready IPad2. The company has sold more than 15 million units of the first Ipad that was introduced last year.
“Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent,” wrote Carl Sandburg.
Allow me to offer you “cash” for your coins of time by suggesting that you begin managing your accounts more efficiently on the Internet. You can view your account statements, obtain important forms, and access your tax documents with a few simple keystrokes. You can reduce postage costs, clutter, storage, and save trees, too. I encourage you to sign up through our website www.pacsunfinancial.com or contact Aaron or Paige in our office. We would like to see you go “paperless” and create more time for doing the things you like to do.
On a personal note: Congratulations to our Five Crowns birthday party survey winners. Although no one was perfect with their Super Bowl, Oscar, and DOW forecasts, these guests tied for first place by predicting five out of six survey questions correctly: Helen Wilson, Dale Baggs, Chris Hanna, Susan Wilson, Dorene Ford, and Jodi Nortel. Any chance you winners might consider some consulting work for Pacific Sun?
Tax Tips for you from our CPA: Direct from our excellent accountant, Gary Capata, here are several ways to save taxes on your return: 1. Business expenses are deductible so consider using a credit card and writing off the interest, 2. Points paid for refinancing are deductible including old, unused points, 3. Education expenses are deductible with credits for Lifetime learning and American opportunity plans, 4. Non-reimbursed employee expenses are deductible, 5. Retirement plan contributions are still a great source of current write-offs and tax deferral, 6. Energy credits have many rules but qualification is usually worth the effort, 7. Donate and deduct your cash and your appreciated assets to charity, and 8. Children or grandchildren’s wages are deductible.
Please check your beneficiaries. It has been a year since we began our quest to review and update all of our client beneficiary designations. Unfortunately, a few accounts are still missing the names of heirs. The proper beneficiary is especially important for retirement plans since there can be significant tax ramifications for loved ones. If you have not recently updated your beneficiaries, please get in touch with us. Thank you.
Fiction takes a backseat to reading about investments and financial matters…at least for me. It is also hard to pass up great stories of intrigue, romance, and getting the bad guys. Although a bit late to the book club party, I recently finished the three amazing novels by Steig Larsson: “The Girl With the Dragon Tattoo”, “The Girl Who Played with Fire”, and “The Girl Who Kicked the Hornet’s Nest.” I was so ecstatic and exhausted from this literary thrill ride that a fourth book might have put me in the hospital with heroine Lisbeth Salander. Never was there a more vivid and incredible character created in the mind of an author. Don’t miss the exploits and trials of this extraordinary woman. I wonder how she might have handled the King’s stammering and stuttering.
According to Ronald Baron, CEO of the $17 Billion fund family with his moniker: “We think the stock market continues to undervalue many publicly traded companies. Low current interest rates make fixed income investments expensive, in our opinion, while stocks seem cheap based on their earnings, balance sheets, and growth prospects.” I tend to agree completely with Mr. Baron.
Pacific Sun Financial Corp; 95 Argonaut, Suite 105, Aliso Viejo, CA. 92656 Telephone: (949) 716-8646 Fax: (949) 716-8645 Website: www.pacsunfinancial.com
National Asset Management, Inc. (NAM) is a Registered Investment Advisor with the SEC. NAM provides fundamental investment management services. The views expressed contain certain forward-looking statements. NAM believes these forward-looking statements to be reasonable, although they are forecasts and actual results may be meaningfully different. Actual events may cause adjustments in portfolio management strategies. This material represents an assessment of the market at a particular time and is not a guarantee of future results. This information should not be relied upon as research or investment advice regarding any security. One cannot directly invest in an index. Index performance returns do not reflect any management fees, transaction cost or expenses. Indices are unmanaged. S&P 500 Index is an unmanaged index of 500 common stocks chosen to reflect the industries in the US economy. The DOW Jones Industrial Index is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market. Securities offered through National Securities Corporation, Member FINRA/SIPC. Investment Advisory Services offered through National Asset Management, Inc SEC Registered Advisor and affiliate of National Securities Corporation. NAM or Pacific Sun Financial does not offer any legal or tax advice. One should consider consulting with a legal or tax professional before implementing investment strategies.
 JP Morgan 3-7-11  LA Times 3-6-11  Tax tips offered by Gary Capata, CPA, Laguna Niguel, California. Consult your tax professional before taking deductions.  Baron Funds Quarterly Report 1-28-11