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October 16 , 2017
Statistic of the Week: 
The past three years have been a difficult period for actively managed mutual funds. 76.8% of domestic active funds have been beaten by index funds. Over the past 10 years, only 58.1% of active funds have stayed in business, highlighting the need for careful investment selection.
Global Perspective: 
The Chinese central government has been bailing out the nation’s smaller municipalities to maintain stability in the financial system. Beijing is allowing the issuance of $419 billion in local bonds in 2015 to help offset the debt situation. The bonds are expected to yield around 7%.
Market Moving Events: 
Monday: Pending Home Sales Tuesday: Case-Shiller Home Price Index, Consumer Confidence Wednesday: Vehicle Sales, ISM Manufacturing Index, Construction Spending Thursday: Jobless Claims, Employment Situation Friday: Markets Closed
Commentary: 
Neither side was bluffing, leaving the euro zone in a state of flux. Greek politicians and negotiators from multiple pan-European and international financial institutions were unable to come to terms over the weekend. According to reports, the Greeks unilaterally ended the negotiations, as Prime Minister Alexis Tsipras called for a public referendum regarding a new bailout to be held on July 5th1 Greek banks have capital controls in place this week, severely limiting withdrawals in an attempt to keep a run on financial institutions at bay.2 The next major hurdle comes Tuesday, when the IMF is due a payment of €1.6 billion.3 European negotiators say that a deal is still on the table,4 but at this point, it seems unlikely that the Greeks are returning to negotiate. Concerns over the European debt situation were at odds with relatively strong data out of the US last week. US GDP was revised to a loss 0.2% while analysts were expecting a greater first quarter contraction.5 A slightly stronger US consumer, coupled with a weakening euro have helped European equities along. The MSCI EAFE rallied 0.91% for the week.6 US equity markets were largely flat, with the S&P 500 falling 0.37% and the DJIA contracting 0.34%.7 The revived strength, albeit lackluster, has pushed yields higher on US fixed income. US Treasuries are headed for their first quarterly loss since 2013.8 The Barclay’s Aggregate Bond Index has dipped 0.73% so far in 2015. With much uncertainty, markets this week are likely to be driven by headlines. - 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:

Journal of Financial Planning

Global Perspective:

The Wall Street Journal

Market Moving Data:

Bloomberg.com, Stratfor.com

Chart of the Week:

Haver Analytics, Bureau of Economic Analysis

Commentary:

1.BBC News
2.BBC News
3.BBC News
4.BBC News
5.Bureau of Economic Analysis
6.Bloomberg
7.Bloomberg
8.Goldman Sachs Asset Management
Contact Information: 

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Fax: 609.671.9199

 

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