Monday, Nov 01

Talking Points of the Week for Financial Advisors (11/1)

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.

Q3 GDP disappointed, rising 2.0% (annualized), well short of the 2.6% expected. While the slowdown from Q2’s growth was anticipated with supply chains and Delta wreaking havoc on consumer spending and investment. The chip shortage alone cut 3.0% from consumption growth and personal consumption only grew at a 1.6% rate, down from 12.0% in Q2. Most economists expect GDP to pick back up in Q4, with the latest Bloomberg survey suggesting a 4.9% expansion.

Personal income fell 1.0% in September, worse than the expected 0.3% decline. The expiration of enhanced unemployment benefits and other programs drove the decline, despite overall wages rising 0.8%.

Despite a few high-profile misses, Q3 earnings season continued strong with the strongest year-over-year earnings growth since 2010 with over half of the S&P 500 having reported. If it ended today, Q3 would be the fourth-highest rate of companies beating estimates since 2008.

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.