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October 16 , 2017
Statistic of the Week: 
Sadly, the opioid epidemic that is plaguing the United States is accelerating according to recent studies. From 2010 to 2016, “use disorder” surged 493%, with 8.3 individuals per 1,000 impacted. Over the same period, US deaths caused by drug overdoses increased 63%.
Global Perspective: 
The Indian government is claiming that its measures to standardize its tax system and crack down on evaders is proving successful. Compared to this time last year, there has been an increase of 25% in tax returns filed. One of the measures that the government took to hinder evaders was removing large-denomination notes from circulation.
Market Moving Events: 
Tuesday: Retail Sales, Import Export Prices, Business Inventories, Housing Market Index Wednesday: Housing Starts, FOMC Minutes, Petroleum Status Report Thursday: Jobless Claims, Philly Fed Business Outlook, Industrial Production, Leading Indicators Friday: Consumer Sentiment
Commentary: 
Tensions with North Korea finally weighed on investor sentiment last week, as the DJIA logged its second-worst week of the year.1 On the week, the S&P 500, DJIA, and NASDAQ all retreated. The NASDAQ fared the worst, down -1.44%, while the S&P and DJIA were down -1.37% and -0.91%, respectively.2 The concerns worked their way into the international markets as well; the MSCI EAFE fell -1.48%.3 Emerging markets experienced the brunt of the impact, down 2.24%.4 There was a shift of capital from equities to fixed income as investors bought up debt. The yield on the 10-year Treasury fell to 2.19%.5 The pullback last week, from both a technical and fundamental perspective, would be considered part of the normal ebb and flow of a healthy market. Going back to 1980, the market has experienced an annual intra-year decline that has averaged 14.2%.6 Despite this decline, it managed to close in the black 28 of those 37 years.7 The “max drawdown” we have experienced so far this year: 3%.8 So while we do not particularly care for the tone of the bellicose posturing (blustering), in terms of the market’s behavior – nothing significantly abnormal has transpired to change our outlook. In the week ahead, the first meeting on the topic of a renegotiated NAFTA agreement will start on Wednesday.9 Representatives from the US, Canada, and Mexico will meet in Washington to discuss the treaty. Odds are there will be some tense moments. - 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:

 Fortune Magazine

Global Perspective:

 The Economist

Market Moving Data:

Bloomberg.com

Chart of the Week:

Haver Analytics / Bureau of Labor Statistics

Commentary:

1.CNBC
2.Bloomberg
3.Bloomberg
4.Bloomberg
5.CNBC
6.JP Morgan Asset Management
7.JP Morgan Asset Management
8.Bloomberg
9. The New York Times
 
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Fax: 609.671.9199

 

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