The Pulse on the Economy and Capital Markets: May 16–20, 2022

At a glance

• Investors are growing more concerned about stagflation versus inflation when it comes to the financial markets and economy.
• Risk assets like US stocks and cryptocurrency saw steep declines last week, while government and investment-grade bonds and commodities moved higher.
• Not only is inflation affecting consumers, but it is also impacting major retailers like Walmart and Target, which became evident after the companies released dismal earnings reports. About $110 billion of value between the two companies evaporated over the course of five days.
• Walmart and Target are among the many retailers grappling with shifts in consumers’ buying behaviors. Consumers are spending more money on basic items like food instead of discretionary items like electronics, which is having a negative impact on inventory amid already-stretched supply chains.
• In terms of industry news, we’re reading about a new development in the crypto market, the US’s growth trajectory versus China, traveling post-pandemic and how inflation is impacting American farmers.

Related resources:

• US growth seen outpacing China’s for first time since 1976
• Crypto exchange FTX US moves into stock trading
• Travel demand is back to pre-pandemic levels and what it means to you this summer
• US farmers under pressure and on the front lines of food inflation amid price spikes

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 (May 24th, 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.

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