The Pulse on the Economy and Capital Markets: December 5 – 9, 2022
December 14, 2022
At a glance:
- After a strong month, the US stock and bond markets declined while international and emerging markets outperformed the US. Despite the collapse of the crypto exchange FTX, Bitcoin was down only 9% over the last 30 days.
- Investors have pivoted their focus to a potential recession rather than inflation. Leading economic indicators are pointing towards a recession in the US, Europe and potentially China.
- Recent earnings calls with Salesforce and Okta — two of the leading technology companies —highlighted slowing sales cycles and a deteriorating economic environment that will impact small and medium-sized businesses.
- The residential real estate market continues to battle higher rates as pending home sales were down 35% compared to last year. However, the silver lining is that for the last four weeks mortgage rates have fallen and are now about 1% below where they peaked at over 7%.
- Despite the slowdown, the Services economy and consumer spending remain solid, especially in the travel sector. What’s the key factor driving this resilience? Gas prices are down 34% and have set consumers up to happily spend during this holiday season.
- As it relates to industry news, we’re reading about how the Adobe Digital Price Index fell 1.9% in November, a housing market update shows a record increase in homes still on the market, and Amazon Web Services predicts almost every healthcare company will be in the cloud in the next 10 years and what to expect as China relaxes their COVID controls.
- Adobe – Online prices fall 1.9% in November, largest drop in 31 months
- Housing market update – Supply posts record increase as homes linger on the market
- “Almost every health care company will be in the cloud in the next 10 years” according to Amazon Web Services
- What to expect next as China relaxes COVID controls
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About the Author
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.