Weekly Market Recap This week the Federal Reserve (Fed) held its target range for federal funds constant. Although the Fed noted US economic activity "appears to have picked up", jobs growth appears to have "diminished" and inflation remains below the Fed's target. The Fed has so far raised rates slowly, relative to history, with the last rate increase in December of last year. This slow pace of rate increases in the US has been one factor that has put diversified bond funds among the best performing asset classes so far this year. This shows why it's helpful to have multiple asset classes your portfolio. Stocks don't necessarily always deliver the highest returns, particularly over shorter time periods. Other economic news was broadly positive this week, both retail spending in the US and economic activity in the EU were encouraging. There is uncertainty around the UK's referendum on EU membership (the so-called Brexit vote) which is scheduled for next week. Remember that a FutureAdvisor Premium portfolio has diversified exposure to over 40 different countries such as America, India and Japan. Brexit is one of many situations in which we believe current information is "priced in" to the market. Thus, taking action based on any prediction is more likely to increase the potential performance drags associated with trading costs rather than improve performance in our view. Separately, there has been some discussion about different standards for financial advice in the news this week, as fans of John Oliver may be aware. At FutureAdvisor we are proud to be held to the fiduciary standard, and therefore must avoid conflicts of interest by putting clients' interests first, which we are very happy to do. Not all financial advisors are currently held to this standard, (though rule changes are proposed). Notes:
Federal Reserve Statement
https://www.federalreserve.gov/monetarypolicy/files/monetary20160615a1.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 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 | $9,438.73 * 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 | * All amounts are as of the sent date of this email | 
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