Weekly Market Recap The September release of US inflation (the rate of change in average prices), saw prices rising at a 1.5% annual rate, boosted primarily by rising energy prices. This is still low by historical standards, but suggests that US inflation could be returning to a level more consistent with historical norms after very low figures in recent months. Across developed markets, inflation has remained relatively subdued at a 1% annual rate, or below. In fact, in Japan, prices are even declining based on most recent data. Inflation matters for investors because as prices rise, a dollar can purchase less, on average, making your savings worth less in terms of purchasing power. Therefore, all else equal, subdued inflation has historically been good for savers. For example, unexpected spikes in inflation, as we experienced in the US in the 1970s, was temporarily harmful to diversified portfolio returns. That's one reason why we believe including attractive assets that also offer a degree of inflation protection, like TIPS or REITs, can be prudent for long-term portfolios. 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 2.0%, 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 |
No comments:
Post a Comment