The Pulse on the Economy and Capital Markets: April 4 – 8, 2022

At a glance:

• We’re seeing markets decline as investors shy away from risk-driven investments in anticipation of the Federal Reserve’s aggressive response to combat inflation.
• Heading into 2022, expectations for the benchmark interest rate was around 1%, however, that has now jumped to over 2.5%.
• A new M&A trend to buy existing assets rather than build new ones to avoid long lead times and skyrocketing raw material costs aims to manage the rise in inflation.
• Supply chains are inching forward as delivery times from suppliers are below peak levels but remain high compared to prior years. Yet, while still elevated, shipping costs out of Asia and Europe are showing improvements.
• US railcar volumes have remained steady with the 3-month average trending higher at roughly half a million car loadings per week.
• As it relates to industry news, we’re reading about a warning to start-ups to focus on burn rate as Fast closes its doors permanently, Visa launches an NFT program in hopes it will bring small businesses into the digital economy, interim CEO of Starbucks suspends stock buybacks to invest into operations and why Elon Musk now owns the majority stake in Twitter.

Related resources

• Fast shuts doors after slow growth, high burn precluded fundraising options
• Visa launches NFT program as it considers the digital art a new form of e-commerce
• Starbucks stock falls as interim CEO Howard Schultz suspends share buybacks
• What’s behind Elon Musk’s sudden investment in Twitter?

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 11th, 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.

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