Wednesday, Aug 24

The Most Important Thing Today (8/24/22)

Proactive communication about what’s going on in the market and the economy is key to building stronger client relationships. Each week, the Helios team breaks down the most important information your clients need into easy-to-understand talking points for you to share.

Let's talk about the strength of the US dollar!

US Dollar Strength vs US Trade Balance

The US dollar has significantly strengthened over the last year with the US Dollar Index rising to levels not seen since the early 2000s.

Typically, this makes it harder for US exports since they become more expensive around the world while making it easier for US consumers to substitute international goods and services at a lower cost.

Over most of the last year of the dollar strengthening, the trade balance, that is exports minus imports, has risen as we would suspect. However, over the last few months, this story has reversed with an improving trade balance since the recent lows in March 2022, despite a dollar that continues to rise.

Source: Helios Quantitative Research, Bloomberg

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.