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February 12 , 2018
Statistic of the Week: 
Disney acquired Lucasfilm and its Star Wars franchise for $4.1 billion in 2012. Sales of merchandise resulting from the new film are expected to be up to $5 billion; since 1977, there has been $32 billion in Star Wars merchandise sold.
Global Perspective: 
The holiday season has an impact on how much cash is in circulation globally. In the weeks leading up to major holidays, banks keep extra cash in the vaults. In the US, there is virtually no change, but money on hand jumps 10% in Russia and Brazil, and China sees increases close to 20%.
Market Moving Events: 
Tuesday: GDP, Existing Home Sales Wednesday: Durable Goods Orders, Personal Income and Outlays, New Home Sales, Consumer Sentiment, Petroleum Report Thursday: Jobless Claims, Market Half-Day Friday: Markets Closed
Commentary: 
In an ugly week of trading, equity markets retreated. Volatility was worse than the closing figures indicate. The DJIA and S&P 500 worked their way further into negative territory, as turmoil in the oil markets captured investor attention. While they had rallied earlier in the week, markets reversed and closed in the red. The S&P fell 0.3% and the DJIA contracted 0.8% on the week.1 They are down -2.6% and -3.9% on the year, respectively.2 Bond yields did not provide much relief – the 10 year Treasury closed the week at 2.20%, rising slightly.3 The Federal Reserve’s move to increase interest rates was at first cheered by investors. The action was well-telegraphed, and the market took the measure in stride. Market deterioration came after US lawmakers reversed a 40-year ban on oil exports, which pushed the price of US crude lower as traders reversed speculative bets.4 Because the energy sector has such wide reaching effects on the US economy, market participants were forced to readjust their risk tolerance, ultimately pushing shares lower. 2015 has seen a large divergence in performance between value and growth stocks. Energy, materials producers, and areas such as transports comprise the value camp. The S&P 500, the “value” category has fallen -8.2% year to date, while its growth counterpart has risen 2.3%.5 This makes for a tale of two markets. -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 Economist

Global Perspective:

The Economist

Market Moving Data:

Bloomberg.com, Stratfor.com

Chart of the Week:

Haver Analytics / The Conference Board

 

Commentary:

1.Bloomberg
2.Bloomberg
3.Bloomberg
4.JP Morgan Asset Management
5.Bloomberg

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