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August 14 , 2017
Statistic of the Week: 
We routinely hear about how underfunded the American pension system is - but some states are fairing far worse than others. Of the $199 billion that Illinois has promised state workers, it is $119.1 billion underfunded. On the flip side, New York state has funded about 90.6% of its pension obligations.
Global Perspective: 
With the G20 meeting wrapping up this weekend, global leaders discussed some spending plans. Deficit spending should be on some of their minds. Only two of the G20 nations are running a budget surplus: Germany and South Korea. The US is near the bottom of the pack with a deficit of 4.4%. Saudi Arabia is the laggard by far with a deficit of 16.9%.
Market Moving Events: 
Monday: Consumer Credit Tuesday: Wholesale Trade Wednesday: Beige Book Thursday: Jobless Claims, Producer Price Index Friday: Consumer Price Index, Retail Sales, Industrial Production, Business Inventories, Consumer Sentiment
Commentary: 
Domestic equity markets were nearly flat with an upwards bias last week, as the DJIA, S&P 500, and Nasdaq all inched up between 0.14% to 0.38%.1 Conversely, international equity markets experienced some weakness. The MSCI EAFE index fell -0.47% while emerging markets backtracked -0.58%.2 International stocks have been standout performers for the first half of 2017. A synchronized global expansion and coordinated monetary policy appear to be paying dividends outside of the US for the first time in many years. It should be noted that yields on US Treasury bonds have been backing up. The 10-year closed Friday with a yield of 2.39%,3 up significantly over the past two weeks. This serves as a reminder that at times, fixed income markets can go toe to toe with equity markets in terms of volatility. The major news item last week was the strength of the June jobs figure (chart right). Beating expectations, the employment situation in the US appears healthy. In the report, the unemployment rate actually increased to 4.4%. However, this was due to an uptick in the labor force participation rate.4 This is happening at the same time that confidence in the labor market hits a 16-year peak.5 As a result, we expect wage growth to continue tracking in the right direction. Economic data out this Friday may confirm this hypothesis, as we receive news on inflation, retail sales, and consumer sentiment. - 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

Bloomberg

 

Global Perspective:

StatisticData

 

Market Moving Data:

Bloomberg.com

 

Chart of the Week:

Haver Analytics / Bureau of Labor Statistics

 

Commentary:

1.Bloomberg
2.Bloomberg
3.Bloomberg
4.JP Morgan Asset Management
5.JP Morgan Asset Management
 
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