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July 17 , 2017
Statistic of the Week: 
A recent survey provided interesting insights on tipping in the US economy. The median tip rate by respondents was 18%. Republican men living in the Northeast and using credit cards leave the largest tips. Men tend to tip more at restaurants, while women are more generous at coffee bars, hotels, and to hair stylists.
Global Perspective: 
It’s not just central bank policy in the United States that investors are watching with a keen eye. The Bank of Canada increased rates for the first time in seven years, raising the target a quarter point to 0.75%. The bank cited strong growth and a desire to try to dampen rising home prices and accompanying household debt as rationale for the move.
Market Moving Events: 
Tuesday: Import Export Prices, Housing Market Prices Wednesday: Housing Starts, Petroleum Status Report Thursday: Jobless Claims, Philly Fed, Leading Economic Indicators
Commentary: 
The general trend in domestic equities continued higher last week, with the S&P 500 rising 1.42% and the DJIA increasing 1.04%.1 The NASDAQ, which has been the leader so far this year, ticked up a very strong 2.59%.2 The gains accelerated after Federal Reserve Chair Janet Yellen insinuated that rate tightening would be more gradual than expected so long as inflation were to remain subdued.3 Her comments also had an impact on interest rates, where yields on the 10-year Treasury fell to 2.33%.4 International equity markets also put in healthy returns last week. There has been substantial industry reporting regarding the shift in investment flows from active investment funds (most mutual funds) to passive investment vehicles (most exchange traded funds). One of the side effects of this shift has been a temporary decline in volatility, as inflows and outflows become more uniform. However, in the event of an economic or geopolitical crisis, this artificially low volatility may flare up to a greater magnitude than we would expect under traditional circumstances. A well-diversified portfolio includes both active and passive products. The release of corporate earnings for the second quarter has begun in earnest. Figures were very strong for the first quarter. Expectations for Q2 are lower, however there is debate as to whether investors have gotten used to seeing the world through rose-colored glasses. - Dan McElwee, CFP®
Chart of the Week: 
About Ventura Wealth Management: 
Ventura Wealth Management is an independent Registered Investment Advisor (RIA). Unparalleled service, objective advice, and comprehensive planning act as the central pillars of our client experience. We are dedicated to building long-term client relationships through diligent management, custom portfolios, client education, and ongoing financial review
Sources: 

Statistic of the Week

CNBC.com

Global Perspective:

 The Economist

Market Moving Data:

Bloomberg.com

Chart of the Week:

Haver Analytics / Census Bureau

Commentary:

1.Bloomberg
2.Bloomberg
3.Goldman Sachs Asset Management
4.Goldman Sachs Asset Management
5.Goldman Sachs Asset Management
 
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