The Pulse on the Economy and Capital Markets: April 11–15, 2022

April 19, 2022

At a glance

  • Stock and bond markets continued to struggle, as investors focused on and grew more concerned about rising interest rates.
  • Global stock markets declined 1.7% and quality corporate bonds are down 11% year to date. More positively, oil and copper started to march higher after a difficult stretch of performance.
  • Last month, the yield curve on the 2-year Treasury was above the curve on the 10-year Treasury, which made investors concerned about the prospect of a future recession. But since then, the 10-year yield rose higher, signaling investors’ optimism about future inflation and economic activity.
  • The Consumer Price Index (CPI) was released last week, coming in at an 8.5% increase and a 6.5% increase excluding food and energy. This marks the highest increase in the CPI since the early ‘80s.
  • PPI numbers were also released last week, and though they surpassed economists’ expectations, they also showed the increasing pressure of inflation on businesses. Final input prices were 11% higher and still up 8% excluding food and energy. Looking further down the supply chain, prices were up nearly 22%. 
  • In terms of industry news, we’re checking out Benjamin Key’s explanation of why higher mortgage interest rates are discouraging home buyers, as well as a new startup that’s gaining traction in the fintech world. Plus, we’re reading about Elon Musk’s hotly debated Twitter bid and Google’s sustainability plans over the next decade.

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Disclosures

Investment advisory services are offered by Aprio Wealth Management, LLC, a Securities and Exchange Commission Registered Investment Advisor.  Opinions expressed are as of the current date (April 19th, 2022) and subject to change without notice. Aprio Wealth Management, LLC shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. This commentary is for informational purposes only and has not been tailored to suit any individual. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment.

This commentary contains certain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements for any reason.

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About the Author

Simeon Wallis

Chief Investment Officer At Aprio Wealth Management At Aprio Simeon is the Chief Investment Officer of Aprio Wealth Management and the Director of Aprio Family Office. Simeon brings two decades of professional investing experience in publicly traded and privately held companies, as well as senior-level operating and strategy consulting experiences.

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