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.

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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 (December 14th, 2022) and are 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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