Weekly Market Recap This week saw data on increasing job openings in the US, potentially building on last week's decline in the unemployment rate to 4.9% for January. Both pieces of data appear to underscore the theme of a strong employment situation in the US currently. Internationally, India's GDP grew at 7.3% for the final 3 months of 2015, putting it among the fastest growing global economies. The oil price was volatile for another week. We want to take some time this week to explain how our rebalancing works, as clients often ask. Rebalancing is intended to keep your portfolio aligned with its overall risk and return goals. We use threshold-based rebalancing so that if an asset class drifts too far from its target allocation, we generally will rebalance your portfolio. However, within this rebalance decision, we also take into account many other constraints including the tax implications of the trade and any short-term redemption fees. Our rebalancing model is a tiered system, such that the asset groups which we believe matter more to your portfolio's risk/return characteristics have less flexibility to move than others. Our research suggests allowing some small drift in your asset mix is optimal, since potential tax costs and fees associated with excessive trading can erode portfolio returns based on our general analysis of historic market performance. The frequency of rebalancing is dependent on market movements and, all else equal, greater market volatility will typically drive more rebalancing activity. It is important to note that rebalancing is not necessarily based solely on whether the markets are up or down. It is instead based on how different asset classes within your portfolio move in relation to each other. We monitor the markets and monitor your portfolio daily for appropriate rebalancing opportunities, but only take action when we believe the benefits of doing so outweigh the costs. For Premium customers, this all happens automatically. Notes:
Recent US employment data:
http://www.bls.gov/news.release/empsit.nr0.htm
http://www.bls.gov/news.release/pdf/jolts.pdf
Indian GDP growth:
http://in.reuters.com/article/india-economy-gdp-instant-view-idINKCN0VH0ZU 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 political conditions, and as subsequent conditions vary. 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. This material may contain "forward-looking: information that is not purely historical in nature. 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 Summary | $8,491.64 Your Total Assets | Ways To Improve Your Portfolio  | Increase Diversification Increase your entire portfolio diversification and lower volatility. | | | Sign in to see your full dashboard | | 
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