The Pulse on the Economy and Capital Markets: September 26 – 30, 2022
October 3, 2022
At a glance:
- Rising interest rates by Central Banks caused the stocks, bonds and commodities markets to decline globally and investors to sell off assets.
- Surprisingly, the Consumer Discretionary sector was the top performer, ending the quarter up 4.4% indicating consumer inflation concerns are waning. The nearly 10% decline in gas and materials has helped reduce inflation expectations.
- The big four credit card companies released insights that indicate consumer spending and sentiments are up. In fact, Bank of America reported they saw a 10% year-over-year spending increase in the month of August, which is above the inflation rate.
- Surging mortgage rates has caused homebuyers to pull out of over 15% of purchase agreements triggering mortgage originations to decline. The Sunbelt market was hit the hardest after an early COVID-related rise in demand and prices.
Related resources:
- Silicon Valley Bank’s Tech Trends 2022: VC activity and lessons from past downturns
- US supply chain index back to normal for second straight month
- Google to shut down gaming service Stadia as CEO Pichai continues cost-cutting efforts
- American homebuyers are finding UK bargains, discounted by weaker pound
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 (October 3rd, 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.
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About the Author
Simeon Wallis
Simeon Wallis, CFA, is a Partner, the Chief Investment Officer of Aprio Wealth Management, and the Director of Aprio Family Office. Each month, Simeon brings you insights from the financial markets in Aprio’s Pulse on the Economy. To discuss these ideas and how they may affect your current investment strategy, schedule a consultation.