The Pulse on the Economy and Capital Markets: June 6 – 10, 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.

Related resources:

• 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?

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 (June 13th, 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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