QUARTERLY MARKET REVIEW

Q2 2016 had its share of ups and downs with the global stock market ending slightly higher. U.S. and Emerging Market stocks had positive returns while International stocks were down. Bond markets had gains, interest rates went even lower, providing an increase in bond prices. The British vote to leave the European Union caused volatility and lots of headline news but if you open this  and look at the chart on page 4 you’ll note that there was a steep sell off initially, followed by a steep recovery which has continued so far into Q3.

Planning note: Given the drop in interest rates you may want to evaluate the current rate of your mortgage in comparison to rates now available. When refinancing it’s important to keep the overall costs in mind. Also, remember that you restart and extend the clock each time you refinance unless you reduce the term of your loan (i.e. go to a 15 year rather than a 30). I often recommend that if you reduce your payment by refinancing you make it work to your benefit by saving that difference every month or adding it to your new mortgage payment.

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