Your Weekly Update - US GDP Improves

	Weekly Market Recap US economic growth improved this week, growing 2.3% on the first estimate for the second quarter. In addition, growth for the first quarter was revised up to 0.6% growth. This was positive, in our view, as growth was previously estimated to have declined in the quarter. Jobless claims remain very low in the US and last week's number represented a 42 year low. Internationally, the Chinese markets fell sharply on Monday, but, despite the recent declines Chinese stocks are up over 10% year to date and over 60% on a one year view. The Chinese economy is projected to grow at 6.8% this year, which is ahead of all major economies except India on International Monetary Fund (IMF) forecasts. China represents about 2-4% of our recommended portfolio depending on age and risk tolerance. A reminder this week on the potential risks of stock picking relative to tracking the market. We view one of the biggest dangers with individual stocks as holding too much stock in your employer. You already rely on your employer for income, so adding stock in your employer increases your overall financial risk. Ownership of employer stock within 401(k) plans has declined in recent years, in part because many employers are eliminating the employer stock choice in favor of diversified funds. Yet, it still represents over 10% of overall 401(k) holdings at some large companies and that's far too much in our opinion. On a broader scale, stock picking also risks leaving you unintentionally overexposed to certain sectors relative to the broader market. This can lead to a worse risk to return trade-off for your portfolio. Also, owning individual stocks can be less tax efficient than owning the index since your portfolio turnover is likely to be higher which can increase your costs, including taxation. Another common mistake investors make with regard to stock-picking is that of choosing mostly B2C (Business to Consumer) brands. Because investors hear about and interact with brands such as Apple, Walmart and Procter & Gamble, they tend to favor those companies when stock-picking. Meanwhile, B2B (Business to Business) companies represent a large portion of our economy and these are often underrepresented in stock portfolios. Examples of B2B companies include Oracle, Schlumberger and SAP. By using broadly diversified ETFs, our investors get exposure to both types of companies. These are all reasons why we favor a diversified selection of ETFs to create a low-cost portfolio for retirement investing. Disclaimer: The views expressed herein are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. Differences in account size, timing of transactions and market conditions prevailing at the time of investment may lead to different results, and clients may lose money. Past performance is not indicative of future results. The tax loss harvesting strategy discussed should not be interpreted as tax advice and it does not represent in any manner that the tax consequences detailed will be obtained or that its tax loss harvesting strategy will result in any particular tax consequence. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Summary $9,640.24 Your Total Assets Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
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