Monday, Aug 02

Talking Points of the Week for Financial Advisors (8/2)

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.

Second quarter economic growth was weaker than expected (though still the second-highest print since 2003), increasing 6.5% versus the 8.5% expectations (annualized real growth rates). The gains were largely driven by the consumer, with personal consumption jumping 11.8% that was fairly evenly split among services and goods, rising 12.0% and 11.6%, respectively. However, the miss was an unexpected $166B drop in inventories as well as falls in both residential and commercial building. Inventories are expected to be a positive role in the second half of the year, with even a halting in the fall of inventories being able to contribute 3.5% to GDP growth in Q3.

The infrastructure bill is back on the table, after hitting a few hurdles, with an announcement from the lead Republican and Democratic negotiators that a deal on the “major issues” had been reached and the Senate voted on Friday to begin debate on the package and the text of the $550B bill being sent to the full Senate yesterday. A final vote could come as early as this week.

Across the S&P 500 the Q2 earnings season has, so far, been strong with more companies beating EPS estimates, and by a wider margin, than an average quarter and the highest year-over-year growth in earnings since the fourth quarter 2009.

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.