At what point should I use a financial advisor?

This is a good question, and depends on each unique individual with worries, concerns and goals. However, generally speaking, it is a good idea to have a professional advisor when you start saving for retirement and planning for your future. There are many considerations that can save money but also show you the best use of your money for growing your wealth.

Are you a fiduciary advisor, and will you act in my best interests at all times?

We are Fiduciary advisors and therefore adhere to the highest Fiduciary standard of being legally bound to prioritize our client’s “best interests” while at all times acting in good faith. You may assume that all advisors uphold the Fiduciary standard of care, but this is not accurate, as only 12% of financial advisors choose to meet this exalted standard.

What qualifications, credentials, and licenses do you hold?

We hold MBA, CFA & RIA – also college concentration in Economics.

How many years you’ve been practicing?

We have been in the business of professionally advising clients on financial matters for over two decades.

How are you compensated / what is your fee structure?

First, there are no hidden fees or costs. Our compensation is “pure” fee-based, on percent of assets on advisory, which a sliding declining percent fee scale based on assets: https://www.mcapitalmgt.com/fees

What is your investment philosophy / strategy?

We craft financially secure futures by focusing on specific goals: liquidity, sustained growth, guaranteed income, portfolio risk containment, all within the context of the client’s objectives and resources. Since we emphasize that the understanding of risks embedded in a portfolio is central to providing value to our clients, we actively manage and build diverse, multi-asset portfolios to capture long-term positive returns while having resilient portfolios that may help weather market volatility.

Have you worked with clients in situations similar to mine?

We have a very diverse client base with respect to asset sizes, ages, needs, goals, and the type of concerns that led to engaging our advisory services. In short, over the past 20+ years we have most likely worked with a client with similar situations.

What kinds of services do you provide?

Beyond investments — financial planning, tax planning, estate planning, insurance, retirement income, etc.

How will our working relationship work?

Will require at least two meetings a year to review portfolios, financial situation, goals, and your overall financial path? We also frequently communicate via email, phone, and video calls.

Do I need to have a certain asset size for you to work with me?

Typically, we require a minimum of about $250,000 as this is the amount need to properly develop a diversified, multi-asset portfolio. However, if goals are different with just income portfolio, we can accommodate a lower asset amount.

Does it cost money to meet an advisor the first time?

No, we offer a complimentary advisory meeting where we offer guidance, review portfolios and do a mini-financial checkup.

What is the process and how do I make an appointment?

You can email or call our office where we can answer some of your other questions and setup a convenient time for an office appointment. Email us contactus@mcapitalmgt.com or call (805) 965-7955.

Excerpts from MCM's Proprietary 2026 CAPITAL MARKET FORECAST REPORT - Montecito Capital Management, Financial Advisory Firm

Excerpts from MCM's Proprietary 2026 CAPITAL MARKET FORECAST REPORT

CAPITAL MARKET 2025 RECAP – LOOKING BACK

The S&P 500’s 16.4% rise in 2025 capped a rare three-year stretch of double-digit gains, a performance powered by a convergence of supportive structural forces rather than any lone factor. Innovation and earnings resilience, underpinned by dovish Fed policy and increasingly constructive economic drivers, worked in concert to create a durable, self-reinforcing tailwind for equities across the year. At the forefront of last year’s market was the rapid acceleration of artificial intelligence (AI). What began as excitement around a handful of mega-cap names broadened into tangible revenue growth, capital spending, and productivity gains across multiple industries. AI moved from concept to execution, and investors rewarded those AI stocks that executed with scale, speed, and rapid sales growth.

2026 U.S. EQUITY MARKET FORECAST: Don’t Fight the Fed! Rate Cuts + Fed QE Resumes = Moderately Bullish

Before unpacking our 2026 forecast, let’s consider the historical framework of the S&P 500 hitting its third straight double-digit positive year. First, three-year bull market streaks often signal more upside. LPL notes that typical bull markets run for five years, while 1990 and 2009 stretched twice that long – so this cycle is far from mature. Second, supporting the bullish case, Charles Schwab finds that in 12 of 14 historical Fed rate-cut cycles, the S&P 500 gained in the year following the first cut, which came in September 2025. By the numbers, the bulls still have the edge. Moreover, market internals improved in the final months of 2025, as S&P 500 leadership broadened, reducing reliance on a narrow group of mega-cap technology stocks and signaling healthier, more durable participation across sectors. Over the past couple of months, financials, health care, industrials, communication services, and consumer discretionary outshined, driving more balanced sector breadth gains. This shift is reflected in the equal-weighted S&P 500, which improved by roughly +3-5% relative to earlier in the year as leadership expanded beyond the “Magnificent 7” stocks – an encouraging sign that gains are being supported by a broader set of stocks rather than a narrow handful of mega highflyers. On the surface, equities aren’t exactly cheap with trailing P/E sitting around 28–29×, while forward P/E is roughly 23×, well above long‑term averages of 19–20×. Yet the robust returns headline story of 2025 wasn’t just AI stock frenzy. The real engine of 2025 was upside surprises in earnings. In other words, 2025 was an earnings‑led market. Strong profits – the denominator in the P/E ratio – kept market valuations aligned with growth, proving that fundamentals, not just hype, steered the market. Case in point, Nvidia’s forward P/E of about ~30× sits well below Costco’s forward P/E near ~44×, underscoring that even high‑growth AI leaders can trade at more reasonable earnings multiples than old‑economy names with premium valuations.

While most forecasts fall short of Oppenheimer’s bold 8,000 target for the S&P 500, optimism still defines the outlook for 2026. According to CNBC’s strategist survey, the median projection of roughly 7,650 suggests about 12% upside, an impressive expectation for a market already near all-time highs. Even Bank of America’s more restrained 7,100 forecast reflects balance rather than bearishness. As strategist Savita Subramanian cautions, “double-digit earnings growth is still expected, but an AI air pocket could emerge if capital spending gets ahead of near-term monetization.”

Taken together, these projections point to a year of respectable—if less explosive—returns. What’s particularly notable is how closely Wall Street’s views align. Citigroup and Fundstrat both see the index reaching 7,700, with Wolfe Research near 7,600. While the supporting narratives differ—from improving financial conditions to productivity-driven earnings gains—the message is consistent: rising corporate profits should continue to underpin equity markets, even if valuation multiples largely hold steady. For 2026, our RIA firm’s S&P 500 outlook calls for a 7,500 target, positioning us slightly below the pack and suggesting a more moderate 9.5% advance for the broad market U.S. equity index.

FORWARD LOOKING, 2026 U.S. ECONOMY

As we move into 2026, the U.S. economy looks like it’s walking a tightrope with growth, jobs, inflation, and innovation all pulling in different directions. After a surprisingly strong 4.3% GDP print in late 2025, consensus forecasts suggest real GDP growth will taper down to 2.0% range next year, signaling moderate but steady growth. However, the spotlight on interest rates intensifies with Kevin Hassett emerging as a top contender to succeed Jerome Powell in May 2026, a catalyst that could swing the rate debate further dovish and potentially outpacing the two cuts currently baked into market expectations. Labor markets are expected to gradually cool. Unemployment, which rose to 4.6% by late 2025, may continue to elevate closer to 5.0% by year-end, reflecting a softer job market without tipping into recession. However, manufacturing is showing signs of a modest comeback, thanks to reshoring initiatives, stronger global demand, and ongoing capital investment – adding an uptick in blue collar structural support to the economy. Artificial intelligence remains a wildcard for both growth and productivity. Firms are increasingly investing in AI-driven automation and efficiency tools, which could lift productivity, reshape certain jobs, and support higher value-added output. How AI affects employment and wages will be closely watched, as it could both moderate inflationary pressure and create opportunities for skilled labor. On inflation, expectations remain above the Fed’s long-term 2% target, though core measures are moderating from 2025 peaks. Consensus forecasts project inflation peaking slightly above 3% in the first half of 2026 before easing later in the year. This backdrop is shaping the Federal Reserve’s policy path where most Wall Street economists anticipate 1–2 Fed rate cuts in 2026, reflecting a balancing act between supporting growth, containing inflation, and navigating labor market shifts. The Fed’s prior moves of three cuts in 2025 and a resumption of quantitative easing suggest it will continue to act cautiously, providing measured support for the economy without overstimulating markets. To receive the comprehensive proprietary research report of 2026 CAPITAL MARKET FORECAST, please contact Montecito Capital Management.