Weekly Market Recap This week the preliminary estimate for third quarter US GDP growth came in at 1.5%. This was a slower rate of growth than the prior quarter, as businesses drew down inventories and exports were lower. However, US consumers are continuing to spend, and we saw more healthy employment data this week. Internationally, the UK's GDP growth for Q3 came in lower than expected, but Japanese industrial production improved for September, as did economic sentiment in the European Union for October. See the BEA link below for more information on this data. A reminder this week on the dangers of chasing hot investments. It's tempting to look back and think that you should invest in a particular fund or sector, which has performed well in recent months. But, typically, top sector performers rotate over time, and what was hot last quarter or last year often may perform poorly in the future. In fact, Vanguard conducted a historical study (link below) that showed that chasing past top performing funds is likely to hurt your returns by 1.5% to 4.0% a year relative to opting for a more stable investment allocation. This is one reason we believe that investment allocations should be relatively stable with a rebalanced portfolio. We believe chasing short-term returns can be counterproductive. Not only can this drive up trading and tax costs, we believe it can also hurt portfolio performance and increase risk. Notes
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
https://pressroom.vanguard.com/content/nonindexed/Quantifying_the_impact_of_chasing_fund_performance_July_2014.pdf Disclaimer
The views expressed are for informational purposes only and 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. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Update Over the past month your portfolio was up 5.5%, and we have no recommendations at this time to improve it. Congratulations on maintaining one of the best portfolios among all our clients. We will, as always, continue monitoring your account and alerting you if there are actions to take (periodic rebalancing is required, etc). 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 | | 
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