The Pulse on the Economy and Capital Markets: August 8 – 12, 2022

August 15, 2022

At a glance:

  • The markets were universally enthusiastic as stocks, bonds, commodities and crypto were up across the board last week.
  • The S&P 500 recovered 50% of its year-to-date losses while the Nasdaq rallied 20% from its lows. What’s behind this? Expectations that inflation will mellow, and the Federal Reserve could start reducing rates early next year.
  • The recent drop in gas prices may be the turning point in consumer sentiment regarding the economy. While consumers are feeling better, they are shifting their spending away from gaming and towards social activities, such as traveling, going to concerts and dining out at restaurants.
  • The shift in consumer spending has impacted the US video gaming industry as sales declined 13% in the second quarter and are expected to drop 9% this year.
  • Tech firms have cited longer sales cycles to businesses is likely hurting future growth rates. Moving forward, companies are scrutinizing their budgets more and reprioritizing their strategy to focus on cost and productivity, specifically the reality of the labor shortage and how they can do more with less.
  • As it relates to industry news, we’re reading about how travel economists are forecasting an increase in hotel room prices, container shipping rates decline, Europe’s energy crisis spills over into food prices and investors brace for more US stock market volatility.

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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 15th, 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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