The Pulse on the Economy and Capital Markets: June 6 – 10, 2022
June 14, 2022
At a glance:
- Stocks, bonds and crypto experienced one of the worst weeks since the early days of COVID, causing concern among investors that the Fed may react aggressively in raising interest rates.
- The Consumer Price Index (CPI) came in well above expectations as year-over-year inflation increased by 8.6%.
- Core CPI is causing a big concern for the markets increasing 6% compared to last year, and at an annualized rate of 7.2% compared to April.
- Inflation is draining consumer confidence and big retailers are reacting by lowering prices on discretionary items.
- eCommerce is starting to revert towards ‘normal’ levels as inflation slows in this sector, but on the flipside, online grocery inflation accelerates with no signs of stopping.
- Homebuilder comments in May: “Builder metrics quickly deteriorating”
- Apple gives “buy now, pay later” firms one more thing to worry about
- Container ship wait-times at Shanghai Fall, still high. Container freight rates drop, still 4x of 2019
- Are inventory levels to high ahead of back to school?
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About the Author
Simeon Wallis, CFA
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.