Weekly Market Recap This week saw continued good employment news in the US, accompanied by better housing data than many expected. In Canada, the Liberal Party won an election victory, bringing to an end a decade in power for the Conservatives. In China, economic growth for the most recent quarter came in at 6.9%. This is the slowest rate of Chinese growth in 6 years and China, once again, cut interest rates this Friday. Nonetheless, this rate of growth remains high by global standards and was a relief to those who feared a sharply weakening Chinese economy. In Europe, the European Central Bank left their accommodative policies unchanged, but hinted at more stimulus in December, which was viewed positively by markets.
At the time of writing, global stock markets, as measured by the MSCI AWCI index, have risen over 9% [SM1] from the lows we experienced in late September. This serves as a reminder of how quickly investment sentiment can swing between the emotional extremes of fear and optimism.
More importantly, we think this shows the importance of adhering to a consistent investment strategy. Those who sold stocks based on fear over the summer have missed a rally, and may still be on the sidelines. Those who have maintained a long-term strategy of remaining in the stock market, a strategy we generally advocate at FutureAdvisor, generally have seen gains and avoided the costs associated with excessive trading, which can erode savings.
Of course, a few months is a very short period to analyze any investment approach. However, this shows what we believe has been true over many decades: a diversified portfolio including stocks historically has offered attractive returns for those able to remain invested and look through temporary market gyrations.
However, dips in the market are not necessarily a reason to remain completely passive. FutureAdvisor views market volatility as an opportunity for tax loss harvesting and portfolio rebalancing, as appropriate for a client's account. . We believe this strategy has the potential to improve both pre and post-tax returns. Notes:
Chinese growth: http://money.cnn.com/2015/10/23/investing/china-interest-rate-cut/
MSCI AWCI Index performance: https://www.msci.com/acwi 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 Your Portfolio Update Over the past month your portfolio was up 6.9%, 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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