Monday, Feb 14

Talking Points of the Week for Financial Advisors (2/14/2022)

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.

Inflation notched up again in January, hitting a multi decade high (again) of a 7.5% year over year price increase, slightly ahead of expectations for a 7.3% rise. Compared to December, prices increased 0.6%. Price increases were broad across the economy while energy, food, and rents continue to push the index higher. Core inflation, which excludes food and energy, rose 6.0% and previously quiet categories, such as medical services, rose.

Rate hike expectations continue to shift upwards with the Fed futures market pointing to a high probability of a 50 basis point hike in March, but as of Friday afternoon that probability shifted to nearly 50/50 between a 25 and 50 basis point hike. This is quite the shift from the end of January when that probability was in the single digits. Looking out further, the market is pricing in five to six hikes for the entire year.

Consumer sentiment dropped further in February, down over 5 points to 61.7, from 67.2 in January. Future expectations fueled the downward move, though feelings on current conditions also fell.

Want to learn more about Helios Quantitative Research? Click Here to schedule a meeting with one of our representatives!

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.