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May 15 , 2017
Statistic of the Week: 
In data from the Bureau of Labor Statistics, we get a good look into how Americans are spending their money on essentials. The average American pays 30.5% of their annual income on housing, about $18,409. Food occupies about 11.6% of household budgets.
Global Perspective: 
The proposed merger between the London Stock Exchange and the Deutsche Börse was tied up by regulators in the European Commission. Regulators were concerned that the merger would hinder competition and create a “de facto monopoly in bond-clearing and repurchase agreements.” This was the third attempt to merge the two companies.
Market Moving Events: 
Monday: ISM Manufacturing, Construction Spending Tuesday: International Trade, Factory Orders Wednesday: ISM Non-Manufacturing, Petroleum Status Report, FOMC Minutes Thursday: Jobless Claims Friday: Employment Situation
Commentary: 
Global markets initially declined last week, as concerns that the failure of the Trump administration’s health-care reform bill foretold the fate of the entire legislative agenda. Both the DJIA and the S&P 500 were able to finish the week in the black, however, with the Dow climbing 0.3% and the S&P moving up 0.8%.1 Yields on the 10-year Treasury were virtually unchanged on the week, trading in a range between 2.35% and 2.42%, only to close at 2.40%.2 International markets also moved higher; the MSCI EAFE moved up 0.06%.3 With the first quarter of 2017 in the books, it is a good time to evaluate just how far the domestic markets have come. Both the DJIA and S&P 500 have rallied nicely, up 5.19% and 6.07%, respectively.4 The NASDAQ has been a standout performer, however, up 10.13%.5 It is important to consider that most of the performance seen in the Dow and the S&P came in the first six months of the year, when the campaign promises of the new administration seemed the most plausible. Since hitting highs at the end of February, they have trended sideways, waiting so see which, if any of the proposed changes, will take hold. Heading into the second quarter, our focus will be on corporate earnings and the tax reform package. The market’s advance has been tied to the idea that tax reform will lead to higher earnings. Strong consumer figures have helped so far, but moving forward, consumer prospects alone won’t be enough for the market to hold its above-average valuations. - 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:

Philadelphia Magazine

 

Global Perspective:

 The Economist

 

Market Moving Data:

Bloomberg.com

 

Chart of the Week:

Haver Analytics / Bureau of Economic Analysis

Commentary:

1.Bloomberg
2.Bloomberg
3.Bloomberg
4.Bloomberg
5.Bloomberg
 
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