The Pulse on the Economy and Capital Markets: August 15 – 19, 2022
August 22, 2022
At a glance:
- After a strong start to the third quarter, the markets cooled off last week as stocks, bonds, commodities and crypto all declined.
- The Federal Reserve indicated in their meeting that a switch in policy regarding the reversal of rates is unlikely to happen as quickly as the market speculated.
- The recent earnings report revealed that leading big box retailers, such as Walmart, Target, Home Depot and Lowes, have bloated inventories as consumer spending habits lean towards more value shopping.
- Single-family home construction has significantly declined throughout the summer, and despite the turbulence in the market, multifamily construction has experienced growth as developers can benefit from either faster-growing rents or active buying and selling trends.
- Rent inflation is surging through the market reaching well above 2017 levels. In fact, rent has increased roughly 25% across the sunbelt states, about 40% in the Atlanta metro area and 30% in New York.
- As it relates to industry news, we’re reading about how home purchase sentiment has fallen to levels not seen since 2011, the cost of rent reaches all-time highs, FTX revenue surged during the crypto craze and the main reasons why HBO Max pulled dozens of films and TV series from their streaming platform.
- Home purchase sentiment falls to the lowest levels since 2011
- Why the rent inflation is so damn high
- FTX grew revenue 1,000% during the crypto craze, leaked financials show
- Why HBO Max is pulling dozens of films and TV series from the streaming platform
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About the Author
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.