The Pulse on the Economy and Capital Markets: November 7 – 11, 2022
November 15, 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.
- 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
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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.