Weekly Market Recap This week was a positive one for most major stock markets. Vehicle sales in February hit a 15 year high in the US and manufacturing survey data was less negative than many had anticipated. Internationally, China cut its reserve ratio requirement in a bid to stimulate bank lending and Eurozone inflation slipped into negative territory for February, potentially putting pressure on the European Central Bank to take action at next week's policy review. The oil price, which has attracted much attention recently, continued to lift from recent lows. When asked what the stock market will do, the great financier of the late 19th century, J.P. Morgan said, "It will fluctuate." We have seen volatility in the markets for the first portion of 2016, starting off with market weakness, but generally replaced by positive moves in recent weeks. A key thing to remember at times like these is that as Jeremy Siegel of Wharton states "Over the short run, equities are indeed a very volatile asset class. But over the long run, perhaps the most stable asset class of all, delivering the highest returns." Of course, this is a historical statement, and the future may differ materially, but Siegel puts historical annualized US equity returns at 6.7% after inflation when averaged between 1802 and 2011. Notes:
US auto sales:
http://www.reuters.com/article/us-usa-autos-idUSKCN0W34LC
US manufacturing data:
http://www.businessinsider.com/markit-pmi-and-ism-manufacturing-february-2016-3
China reserve ratio cut:
http://www.bloomberg.com/news/articles/2016-03-01/china-s-stock-futures-rise-in-hong-kong-after-reserve-ratio-cut
Eurozone inflation:
http://www.ft.com/fastft/2016/02/29/eurozone-inflation-sinks-well-below-expectations/
Jeremy Siegel quote:
http://www.reuters.com/article/us-investing-stocks-jeremysiegel-idUSBREA1A0SP20140211
Siegel's historic market returns:
http://www.aaii.com/journal/article/real-returns-favor-holding-stocks.touch#figure-1 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 statements": 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 | $9,104.90 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 | | 
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