The Pulse on the Economy and Capital Markets: August 1 – 5, 2022

August 9, 2022

At a glance:

  • Global markets increased last week as investors embraced riskier stocks and bonds aimed to recoup losses that occurred during the first half of the year. Nasdaq, Russell 2000 and emerging markets led the risk-centric performance, while the energy sector dropped 8% last week.
  • Earnings are growing faster than expected with 75% of the S&P 500 reporting positive earnings surprises despite higher costs due to inflation.
  • The unemployment rate in last week’s unemployment report reached a 50-year low after dropping 3.5% shocking both economists and investors. Despite the US economy adding 528,000 new jobs, the four-week average of initial unemployment claims has increased as the layoff trend shows no signs of slowing down.
  • The M&A markets can often provide insight into key trends of the economy and despite a potential recession, the M&A market remains active.
  • Two private equity firms — Apollo Global and ThomaBravo — announced buyouts of publicly traded companies Atlas Air and Ping. In addition, acquisitions are making headlines with Amazon, TD Bank and GlobalPayments scooping up smaller companies, as signs point to substantial balance sheets and cash to make such acquisitions possible.
  • As it relates to industry news, we’re reading about a World Series of Poker player charged with spoofing the gold market, CEOs blame remote workers for slow sales, behind the Inflation Reduction Act and semi-automated warehouses may become cheaper.

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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 (August 9th, 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.

Securities offered through Purshe Kaplan Sterling Investments. Member FINRA/SIPC. Investment Advisory Services offered through Aprio Wealth Management, LLC, a registered investment advisor. Aprio Wealth Management, LLC and the Aprio Group of Companies are not affiliated with Purshe Kaplan Sterling Investments.

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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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