The Pulse on the Economy and Capital Markets: November 7 – 11, 2022

At a glance:

• Lower-than-expected CPI has the stock and bond markets surging for the quarter, which has investors speculating on when the Fed will pivot and start lowering rates. Two of the primary reasons for this surge — weak inflation data and the US election is expected to gridlock the market.

• FTX, the world’s largest crypto exchange, crashed due to fraud allegations causing the company to file for bankruptcy. Comparisons to Enron have already begun to swirl as FTX’s estimated five million customers could potentially lose $8 billion or more.

• Consumers continue to spend on experiences and luxury, yet the third quarter earnings report reveals companies are reducing their earnings estimates with concerns over inflation and slowing economic growth. A slowdown in advertising has already begun and the tech industry, which thrived during COVID, are rapidly reducing jobs.

Related resources:

• FTX files for bankruptcy protection in US; CEO Bankman-Fried resigns
• Larry Summers – FTX could be an Enron
• Current state of the housing market; Overview for mid-November
• Inflation to dampen holiday spending, retail trade group forecasts

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 (November 15th, 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.

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