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February 12 , 2018
Statistic of the Week: 
Over 50% of startups valued at over $1billion in the US were founded by immigrants, a study by the National Foundation for American Policy found. The nonpartisan think tank said that the 44 largest immigrant startups created 760 jobs per company.
Global Perspective: 
The Bank of England’s most recent meeting notes show increasing concern that fears over Great Britain leaving the European Union is one of the contributing factors to the recent decline in the pound. The institution, which is officially neutral in the debate, said some business spending is being delayed until after the referendum.
Market Moving Events: 
Monday: International Trade, Personal Income and Outlays, Pending Home Sales, Tuesday: Case-Shiller Home Price Index, Consumer Confidence Wednesday: Petroleum Status Report Thursday: Jobless Claims, Chicago PMI Friday: Employment Situation, Consumer Sentiment, Vehicle Sales
Commentary: 
After five weeks in a row of positive momentum for domestic equity markets, the streak was snapped in last week’s shortened trading. The movement pushed the S&P 500 back into negative territory for 2016’s year-to-date performance figure, while the DJIA remains barely “in the black.”1 One significant item to note is that the volatility index (VIX) hit a seven-month low last week,2 signaling that prices are better “matching up” and that some of the stress is leaving the system. The VIX has declined 47% since its peak on February 11.3 The bond market, as represented by the 10-year Treasury, was unchanged. The 10-year finished the week yielding 1.91%.4 Bond market investors are not buying into the rally in equities. US GDP (chart right) was revised higher for the fourth quarter.5 The US consumer seems to be chugging along, despite a wide range of items that could be disruptive. As long as the consumer stays on track, it is difficult to imagine a sustained downtrend in the US economy. Oil prices declined last week, with West Texas trading below $40 / barrel again.6 US stockpiles have risen six weeks in a row,7 making it hard to believe that the turbulence in the energy markets is past us. While equity market volatility has declined, and the broad economy seems stable, we may be experiencing a lull in a larger market swing that is likely to persist for some time. Fools rush in. -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 Wall Street Journal

 

Global Perspective:

The Economist

 

Market Moving Data:

Bloomberg.com

 

Chart of the Week:

Haver Analytics / Bureau of Economic Analysis

Commentary:

1.Bloomberg
2.Goldman Sachs Asset Management
3.John Hancock Investments
4.Bloomberg
5.Bureau of Economic Analysis
6.Bloomberg
7.John Hancock Investments
 
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