Monday, Jan 31

Talking Points of the Week for Financial Advisors (1/31/2022)

As an OCIO, Helios distributes a 19-page Weekly Report to member firms every Friday, which includes risk level summaries, model allocations, detailed model positioning information, market index information, and much more. Here, we are sharing discussion points for Financial Advisors to use with their clients which we provide in the Weekly Report.

Market volatility continued with the S&P 500 briefly falling into correction territory on an intraday basis on Monday before the market rallied in the afternoon. Investors were hit with a more hawkish Fed though Apple and Visa posted strong earnings.

As expected, the Fed kept rates steady, though Powell signaled willingness for back to back rate increases later this year during his press conference. The Fed futures market reacted by shifting expectations for up to five rate hikes this year.

Fourth quarter GDP came in above expectations, with the US economy growing at a 6.9% annualized rate, above the expected 5.5 %. Underneath the hood, well over half of the growth came from inventory investment. We have talked about low inventories being a place for growth but the combination of a weaker than expected holiday season and omicron impacts changing consumer behavior also contributed to the inventory build up. Still, the inventory rebuild could be an area of continued growth, and perhaps even a welcome sign amid supply chain headaches. Despite inflation fears and omicron impacts, personal consumption still grew at a 4.9% rate.

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Team Helios

Team Helios

Helios partners with Financial Advisors to help them grow their business, save time, and add scale to their services through enhanced asset management capabilities. Helios was founded in 2016 in Granite Bay, California.