Weekly Market Recap US services softened in August based on survey data, but still demonstrated expansion. US jobless claims held at low levels. Overall, the US economy appears in a reasonably good state with unemployment of 4.9%, in the range that many economists consider "full employment". Internationally, the European Central Bank (ECB) held rates steady. A reminder this week on the historical attractiveness of stocks as an asset class. Capturing stock returns is fundamental to how our portfolios are constructed. For example, researchers Elroy Dimson and others at London Business School have found that each U.S. dollar invested in a global equity portfolio across 23 countries in 1900 would now be worth $300 in 2015. Now remember, this return is achieved even across a period that includes two major world wars along with countless other disruptive events, including the assassination two sitting US Presidents (McKinley and Kennedy). For comparison, each U.S. dollar invested similarly in a global bond portfolio in 1900 would be worth $8 in 2015. Note that these returns are adjusted for inflation but do not account for the impact of commissions, fees and other trading costs or taxation. Clearly, 116 years is a long time to assess asset returns, with many ups and downs during the period and within countries. This is why we use diverse assets as well as international diversification to help smooth returns. Nonetheless, the historical record for the passive investor in equities appears impressive. That's why we believe in having a meaningful portion of your portfolio in equities and sticking with it for the long haul, rather than trying to time the market. Notes:
Data on long-term asset class returns
http://publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=AE3E00B9-91E2-D1FA-6C18765D3A968D73 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 down 1.7%, 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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