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February 12 , 2018
Statistic of the Week: 
70% of Americans own some type of life insurance policy today, down from 78% in 2004. The gap between the amount of life insurance Americans have, and the amount they need, is approximately $320,000.
Global Perspective: 
The People’s Bank of China devalued the Yuan by almost 2% last week, but market depreciation pushed the value lower by around 3% by week end. This was the largest devaluation maneuver by the Chinese since 1994. The surprise move brings into question the “real” health of the Chinese economy.
Market Moving Events: 
Monday: Empire State Manufacturing, Housing Market Index Tuesday: Housing Starts Wednesday: CPI, FOMC Meeting Minutes Thursday: Jobless Claims, Philly Fed, Existing Home Sales, Friday: PMI Manufacturing
Commentary: 
A change in China’s monetary policy created waves across global financial markets last week. The Yuan weakened about 3% versus the US Dollar, resulting from the People’s Bank of China’s devaluation maneuver.1 The shift, which came early in the week, pushed global equities around until investors digested the news. Initially, domestic equity indices fell sharply before reversing course on Wednesday. The S&P 500 finished the week up 0.73%2 and the DJIA climbed 0.65%.3 The Dow is still in negative territory for year-to-date performance.4 The move in the Yuan contributed to a weekly decline in the international markets, with the MSCI EAFE dropping 1.35%5 and a broad measure of emerging markets contracting 2.31%.6 Fixed income markets did not escape the volatility; Wednesday’s trading saw yields on the 10-year Treasury dip to 2.13%, before they, like equities, reversed course and ended the week virtually unchanged.7 The markets have a busy week ahead. Several key retailers are reporting earnings, and there are various economic releases (housing, manufacturing, and inflation data points) that will reflect on the overall health of the consumer. 90% of the S&P 500 has reported second quarter earnings so far, and headline earnings have decreased 10.1% year over year.8 Oil appears to be a significant factor – when the energy sector is stripped from this figure, earnings actually increased 2.6%.9 Summer trading is often volatile due to vacation schedules.
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: 
1.Bloomberg
2.Bloomberg
3.Bloomberg
4.Bloomberg
5.Bloomberg
6.Bloomberg
7.Bloomberg
8.JP Morgan Asset Management
9.JP Morgan Asset Management

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