Monday, Jun 01

Talking Points of the Week for Financial Advisors (6/1)

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 the talking points of the week which we provide in the Weekly Report.

First-quarter U.S. GDP was revised slightly downward to -5.0%, from the initial -4.8%

The consumer data was noteworthy with personal income surging up 10.5% on the back of federal relief efforts and a plunge in personal spending (down 13.6%). The income was almost entirely attributable to the CARES Act since wages and salaries declined by 8%. Together, this leads to an unprecedented surge in the personal savings rate, up to 33%, which blew by the previous peak of 17.3% back in 1975.

University of Michigan consumer sentiment survey was released, showing a slight uptick in overall sentiment, but below expectations and nearly 30 points below May of last year.

Jobless claims remain elevated at 2.1M, roughly meeting expectations. However, there is increasing fear that ten weeks into the crisis that these may no longer be temporary layoffs and may point to permanent business closures as PPP funding and other government assistance programs run out.

Nyle Bayer

Nyle Bayer

Nyle Bayer is the Chief Marketing Officer at Helios, where he helps Financial Advisors tell their story to the clients they serve. Prior to Helios, Nyle was the President of Up Capital Management, a Registered Investment Advisor. Nyle lives in the Sacramento, CA area with his wife and three children.