Weekly Market RecapThis week the Federal Reserve (Fed) held interest rates steady, as expected, expecting future rate increases to be "gradual" as the economy expands at a "moderate pace". The US posted respectable data on new home sales. Durable goods orders suggested the US manufacturing sector has some momentum, bolstered by growth in US exports for March. Early estimates of Eurozone GDP for the first quarter of 2016 showed growth of 2.2% year-over-year, ahead of most expectations. Generally, notwithstanding the spike in growth early in 2010 and 2011 coming out of the last recession, real global growth has fallen within a 3% to 4% range. The International Monetary Fund (IMF) projects it to continue to do so for the coming years. Currently, global growth is closer to the more muted levels seen in the 1980s than the higher growth experience in the 1990s, according to IMF data. Economists continue to view the overall recovery from the last recession as relatively slow and gradual. This broad economic picture has potentially contributed to softer global equity market returns in 2014 and 2015, as global economic growth has generally fallen at the lower end of expectations. Notes: Disclaimer: Your Portfolio Summary
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Saturday, April 30, 2016
Your Weekly Update - European Growth Improves
Sunday, April 24, 2016
Your Weekly Update - IMF Notches Down Growth Forecasts
Weekly Market RecapIn the US, housing starts for March were weak, but existing home sales came in better than expected. This led to a slightly improving housing picture in aggregate, which can be a positive for the broader economy. The oil price remained over $40 per barrel, despite the collapse of an expected deal between major overseas oil producers to freeze output. The oil price is well above the lows of February, which was barely over $26 per barrel. Globally, the International Monetary Fund (IMF) recently updated their economic forecasts, notching down overall growth a fraction to 3.2% for 2016. The IMF called the global economy "subdued", based in part on slowing trade and investment. However, one positive was China, where the growth forecast was revised up slightly, with China expected to be the second fastest growing major economy in 2016 behind India. With tax season in the rear-view mirror, it can be useful to get your 2016 financial planning in order so that you don't have to scramble to make either tax day or end of year deadlines. We believe sustainable saving is a steady, ongoing process. For example, if you have a 401(k) or similar plan, now can be a good time to see if your contribution level is where you want it. If it's lower than you would like, perhaps make an incremental increase of 0.5% to 1% of your eligible pay now to help you reach your savings goal this calendar year. These small increases, if done annually, can really add up over time and if you are eligible for a company match of your 401(k) contributions, then that can magnify the impact of your saving. Notes: Disclaimer: Your Portfolio Summary
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Saturday, April 16, 2016
Your Weekly Update - Where To Find Your Tax Forms
Weekly Market RecapThis week saw the markets broadly continue to gain. The Fed saw the US economy generally improving in its Beige Book report. Internationally, China which has been soft, saw strong export growth for March. That could hint at some stabilization in the economy after recent softness. Inflation appeared to increase slightly in major European economies. A reminder this week on why we believe diversified and low cost Exchange Traded Funds (ETFs) tracking broad indexes are an appropriate building block of your portfolio. The first point to note, as research by JP Morgan has shown, is that the median stock performance can often lag the index. This may seem surprising, however, a small number of stocks can make very large gains each year. So it's easy for someone holding a concentrated stock positions to miss them. By holding a diversified portfolio you are able to capture gains wherever they occur within the index you are tracking. Secondly, the composition of a well-constructed index evolves over time to reflect the broader economy. For example, companies like Facebook and Google (now called Alphabet) are relatively recent additions to the US stock market, which a buy and hold individual stock investor may not own. Also, consider that when the Dow Jones index began railroad stocks made up more than half the index and now they are a far smaller part of the stock market. By tracking an appropriate index you ensure that your stock holdings are kept up to date and represent a relatively current reflection of the investment options. Notes: Disclaimer: Your Portfolio Summary
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Sunday, April 10, 2016
Your Weekly Update - Just Over A Week Until IRA Deadline
Weekly Market RecapThis week the Federal Reserve (Fed) provided the minutes of their most recent March meeting. The Fed see the US economy "expanding moderately" with strong job growth somewhat offset by weaker exports because of the strong dollar. Internationally, the Canadian economy has weakened due to the low oil price, and Japanese consumer spending was sluggish. European growth remains steady, if modest. Outside of China, which is soft, several other countries in emerging Asia show strength. Overall, most Fed committee members voted to hold rates steady, with one member voting for interest rates to increase. Importantly, this Wednesday, the US Department of Labor released revised rules with the aim of improving investment advice for those saving for retirement. Though the rules aren't expected to be fully implemented until 2018, we applaud the spirit of these rules in ensuring that retirement savings products put clients' needs first and avoid excessive commissions. These are principles that have always guided FutureAdvisor, but we hope that these new rules raise standards across the investment industry, ultimately leading to better retirement outcomes. The tax deadline of April 18th is now a little over a week away. With it comes the deadline on 2015 IRA contributions. An IRA can be a tax efficient way to save for retirement by potentially deferring or eliminating tax on your savings within an IRA. As the deadline draws near we have some advice on whether an IRA makes sense for you and which type to consider here: Notes: Disclaimer: Your Portfolio Summary
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Friday, April 8, 2016
FutureAdvisor | Market movements have created an opportunity to rebalance
As part of our 24/7 monitoring of your investments and the markets, we want to alert you that it may be a good time to rebalance your portfolio based on recent market movements. Based on the market fluctuations since our last rebalance email on February 26, 2016, we are recommending that you take action in 1 of your accounts. Sign in for the most up-to-date rebalancing recommendations.  If you have any questions or want to talk to an advisor just reply to this email. Thanks again for using FutureAdvisor. | ||
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Saturday, April 2, 2016
Your Weekly Update - Markets Make 2016 Highs
Weekly Market RecapAfter a volatile start to the year, this week rewarded investors with the markets making new highs for 2016. Personal expenditures and payrolls both improved in the US and Janet Yellen, the Chair of the Federal Reserve, reiterated in a speech this week that interest rate increases are likely to be "gradual". Overseas in Brazil, the chance of the President being impeached increased as one of the coalition partners left the governing coalition. The markets have viewed this favorably, putting Brazil among the top performing markets so far this year. The current wave of optimism in the market highlights how quickly sentiments can shift. As recently as February, there was focus on a potential global recession. That focus has since receded in recent weeks as stock prices have rallied. The great investor Benjamin Graham wrote in the 1940s, "In the short run the market is a voting machine, but in the long run it's a weighing machine." Those words remain true today. The market can swing in the short term, but in the long term we've seen markets generally rise over decades reflecting ongoing economic growth. This is why we believe that despite volatile markets, staying disciplined and remaining true to your investment tenants will be the best path to long-term investment success. Notes: Disclaimer: Your Portfolio Summary
Ways To Improve Your Portfolio
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