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October 16 , 2017
Statistic of the Week: 
The college funding gap is causing families to think differently about paying for college than in the past. 64% of families want their children to work at least part-time to defray costs, 62% plan on cutting back on vacations, and 27% of parents expect to get second jobs to help support college costs.
Global Perspective: 
As recently as October, the World Bank forecast average oil prices for 2016 at $51. Last week, the organization lowered its forecast to $37 per barrel. Of the 46 commodities for which the World Bank produces forecasts, 37 were projected to be lower than previous estimates. Oil prices caused Nigeria to request $3.5 billion in loans from the World Bank.
Market Moving Events: 
Monday: Personal Income and Outlays, ISM Manufacturing Index, PMI Manufacturing, Construction Spending Tuesday: Vehicle Sales Wednesday: ISM Non-Manufacturing Index Thursday: Jobless Claims, Productivity & Costs Friday: Employment Situation, Int’l Trade
Commentary: 
The decline in equity markets took a pause last week. The S&P 500 rose 1.77% and the DJIA climbed 2.32%.1 While it was nice to see weekly performance in the black, January’s action in equities was painful at best. The S&P 500 has fallen 4.96% and the DJIA decreased 5.39% year to date.2 The NASDAQ has performed particularly poorly, down 7.82% so far in 2016.3 US equity markets are behaving relatively well when compared with their international peers. However, with uncertainty tightly grasping investor sentiment, the 10-year Treasury has declined to a yield 1.94% as of Friday’s close.4 In the past, we have spent much time dissecting Federal Reserve policy. However, 2016 is shaping up to be a year dominated by the policies of the People’s Bank of China. Speculation over whether or not the PBOC will devalue its currency, and how other emerging market currencies will behave, are likely to be dominant themes in the months ahead. Significant hedge fund managers like Carl Icahn, Kyle Bass, and Bill Ackman are betting that the Chinese will be forced to devalue.5 The PBOC is posturing that it will be able to maintain course. In the past, such hedge fund titans have pushed the value of currencies around, and have been able to force central banks’ hands. It will be curious to see to what extent they are willing to take on the Chinese, and how these colossal market forces react when they come into direct conflict. -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:

Money 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. The Wall Street Journal
 
Contact Information: 

Phone: 609.671.9100

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Fax: 609.671.9199

 

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