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

April 12, 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.

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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 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.

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.

No graph, chart, or formula in this presentation can be used in and of itself to determine which securities to buy or sell, when to buy or sell securities, whether to invest using this investment strategy, or whether to engage Aprio Wealth Management, LLC’s investment advisory services.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Any securities mentioned in this commentary are not FDIC-insured, may lose value, and are not guaranteed by a bank or other financial institution. Before making any investment decision, investors should read and consider all the relevant investment product information. Investors should seriously consider if the investment is suitable for them by referencing their own financial position, investment objectives, and risk profile before making any investment decision. There can be no assurance that any financial strategy will be successful.

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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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