Weekly Market Recap This week saw the International Monetary Fund (IMF) nudge down global GDP growth estimates for 2016 to 3.1% from 3.2%. This forecast change by the IMF is primarily a reaction to Brexit, with the UK expected to see lower, but still positive growth for 2016-17 with small, but negative impacts on trading partners. On the positive side, the emerging markets of Brazil and Russia are expected to have a more positive 2016 than originally projected. We encourage you to take some time to consider your risk tolerance setting. This is useful to do at least annually, unrelated to market events. To help with this, it can be helpful to think back to how you felt as an investor on Friday, June 24th, after the Dow fell 610 points on Brexit fears. Was your view that these types of market movements can happen regularly, and tend to come with investing in portfolio that contains equities? Or did the large movement make you nervous to the point you considered changing your allocation? Also, bear in mind that the Brexit pullback last month was relatively short-lived and shallow. Historically longer and deeper corrections have occurred. Self-reflection on how you react to market events can help correctly identify your true risk tolerance, and consequently, be better prepared when future world events occur that rattle the financial markets. Your risk tolerance should be set for the long term. The right answer for your risk tolerance depends on your own ability to manage the expected trade-off between greater ups and downs in the market in exchange for potentially higher returns. Please remember that our algorithms already take into account your age and time to retirement in personalizing your portfolio. This means that your risk tolerance should not necessarily be aggressive if you are younger or conservative when you are older. Considerations of your age is already included in your personalized portfolio allocation through what is often called a glide path that changes your allocation as retirement draws closer. If in doubt, select a lower risk tolerance, because having a strategy that you can truly stick with is critical for investment success, in our view. Also, remember that adjusting your risk tolerance is likely to result in trades for your portfolio, which can have both a direct cost and tax implications. Notes:
IMF World Economic Outlook Update
http://www.imf.org/external/pubs/ft/weo/2016/update/02/ 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 Update Over the past month your portfolio was up 6.1%, 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  |  | Action Required - keep your recommendations accurate | | Your financial institution requested additional authentication to keep your investment accounts synchronized to FutureAdvisor. Keeping your accounts synchronized allows FutureAdvisor to monitor and keep you up-to-date on your investments and recommendations. | | Please log in to fix this in your Financial Profile. | | Sign in to see your full dashboard | * All amounts are as of the sent date of this email | 
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