The Pulse on the Economy and Capital Markets: July 4 – 8, 2022

July 12, 2022

At a glance:

  • Markets were up across the board as economic data suggests the worst is possibly behind us, and that the Fed may not respond as aggressively to raising interest rates.
  • The Nasdaq and Russell 2000 had the largest gains and bitcoin rallied big ending the week up nearly 13%, while government and investment-grade bonds declined.
  • Gas prices may have peaked and could start rolling over after prices shot up from $3.50 to nearly $6 this year.
  • Mortgage rates are mirroring gas price patterns as the 30-year fixed-rate mortgage drops to 5.3% from 5.7% last week. However, this recent drop is the largest decline since 2008.
  • Home builders’ sentiments worsen as mortgage rates reduce home affordability and home inventory drops to about half of 2019 levels.
  • More people are working from home, which is a key factor impacting low inventory levels on homes. Of the top 10 markets for commercial office real estate only three – Austin, Dallas and Houston – are at or above 50% occupancy and above the national average.
  • As it relates to industry news, we’re reading about top places for singles to relocate, rising mortgages are slowing the construction of single-family and multifamily homes, crypto brokerage Voyager Digital files for bankruptcy and Elon Musk faces a long legal war with Twitter.

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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 (July 12th, 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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