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June 19 , 2017
Statistic of the Week: 
The Chinese Shanghai Composite Index fell 8.5% on Monday (overnight, US). It was the second consecutive day of losses. The drop was the worst decline since 2007. The Shanghai has fallen 28% since its June peak.
Global Perspective: 
Cuba and Iran have one thing in common – as international sanctions are removed from the no-longer-quite-so-rogue states, business activity is expected to pick up. Both are “developed enough that they could thrive once the restrictions are lifted,” and early indications show “green shoots” sprouting.
Market Moving Events: 
Monday: Durable Goods Orders Tuesday: S&P Case Shiller HPI, Consumer Confidence Wednesday: Pending Home Sales, FOMC Meeting Announcement Thursday: Jobless Claims, GDP Friday: Employment Cost, Consumer Sentiment
Snapping a two week winning streak, equity markets receded last week. The DJIA moved into negative territory on the year after falling 2.82%.1 The S&P 500, while still posting a positive year-to-date number, contracted 2.19%.2 As the dip was marked in domestic equities, the S&P 500 remains within a trading band it has been in for 2015. International markets did not fare much better last week, with the MSCI EAFE dipping 1.5%.3 One positive item for fixed income investors: the downward pressure on equities caused a safety bid on 10-year Treasuries. They ended the week yielding 2.27%.4 Trading on thin economic data, investors eyed corporate earnings. Negative movement in Apple weighed disproportionately on the indices last week. (The sheer size of Apple’s market capitalization causes its movement to have a greater impact on index movement than its smaller counterparts). While corporate results are beating tempered expectations, second quarter results look to be lower than last year’s figure – not a compelling statistic.5 With the DJIA being in negative territory, and the S&P 500 barely holding onto gains, this week’s GDP report and FOMC meeting announcements will be parsed for further insight into the health of the economy and central bank actions. Expect both equity and fixed income markets to fluctuate. - Dan McElwee, CFP®
Chart of the Week: 
About Ventura Wealth Management: 
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5.Goldman Sachs Asset Management


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