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December 4 , 2017
Statistic of the Week: 
The decline in crude prices is hitting Venezuela particularly hard, as the country faces runaway inflation – up over 180% in the past year. Venezuela is beginning to print bills in larger denominations, as the 100 bolivar note (the largest denomination available) is now worth about 10 cents.
Global Perspective: 
In its fifth reduction in a little over a year, the People’s Bank of China lowered its reserve requirement ratio for banks, easing lending standards. The ratio is the amount of deposits a bank must keep at the PBOC. The metric was cut 0.50%. The move comes amid concerns of a manufacturing slowdown in the country.
Market Moving Events: 
Wednesday: Petroleum Status Report Thursday: Jobless Claims, Treasury Budget Friday: Import Export Prices, Rig Count
Commentary: 
For three weeks in a row, domestic equity markets have rallied. Last week, the S&P 500 increased 2.71% and the DJIA ticked up 2.24%.1 International markets saw a significant surge, with the MSCI EAFE Index shooting up 4.67%.2 While US markets are down just under 2% year to date, the international markets have taken a notable beating. Even after last week’s rally, the EAFE is still down close to 5% so far in 2016.3 As we have noted in previous weeks, the rally in stocks has not had a significant impact on the domestic Treasury market. While yields increased and prices fell last week, they did so moderately; the 10-year finished Friday yielding 1.88%.4 As the price of crude has rallied over the past few weeks, investors have become more bullish in the short-term. West Texas Intermediate contracts have risen to $35.92.5 Wednesday’s Petroleum Status Report and Friday’s Rig Count figures will factor into analyst expectations for future movement on the commodity that is pushing around global markets. The jobs report (chart right) last Friday assuaged some recession fears that had been popping up. Many hold that as long as the US consumer continues to spend, the economy can muddle along, even with election year concerns and theatrics. Economic data this week is very light, In the short-term, markets are likely extended on the up side. A lack of news may give some an excuse to sell. -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:

The Week

 

Global Perspective:

The Economist

 

Market Moving Data:

Bloomberg.com

 

Chart of the Week:

Haver Analytics / Bureau Economic Analysis

 

Commentary:

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