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.

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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 22nd, 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 regist

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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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