The Pulse on the Economy and Capital Markets: August 22–26, 2022

At a glance

• Reducing inflation is the Federal Reserve’s top priority, according to Chairman Jerome Powell, who made the declaration at the Fed’s annual conference in Jackson Hole last week.
• On the heels of this news, which implies interest rates will remain high for longer, US stocks sold off, and bonds and bitcoin saw declines.
• Meanwhile, emerging markets and commodities performed well in light of the news, as these sectors often respond well to inflationary environments.
• Although oil prices and inflation often go hand in hand, many economists are turning their attention toward natural gas prices, which have reached alarming highs in Europe.
• The rising cost of energy has triggered speculation over an impending recession in Europe, as prices are having a negative impact on consumer sentiment and future outlooks for EU businesses.
• In terms of industry news, we are remembering philanthropic and investing icon Julian Robertson, who passed away last week at the age of 90. Plus, we’re sharing a collection of articles on the state of US home prices, AI advancements in restaurants and the declining pace of travel.

Related resources:

• Julian Robertson, 90, dies: Brought hedge funds into the mainstream
• Something had to give – home prices down for the first time in 32 months
• How robots are advancing the pizza industry to the next level
• Pace of decline in US hotel demand slower than in past years

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 29th, 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.

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