Monday, May 02

Weekly Talking Points for Financial Advisors (5/2/2022)

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.

Read the highlights of this week's commentary from Helios:

First quarter GDP fell at a 1.4% annualized rate, surprising economists who had expected a 1.0% gain. The contraction was linked to trade, inventories, and, to a lesser extent, less government spending. While those weighed on GDP, strong consumer demand, with real final sales growing at a 2.6% annualized rate, may indicate growth may soon return and contribute to the surge in imports underlying the trade numbers.

Income growth slowed down in March, growing at 0.5% vs. 0.7% in February. While wage growth remains solid, rising 0.6%, it is slower than inflation, which is continuing to put pressure on consumers.

While still relatively early, first quarter earnings are more mixed thus far than in recent quarters, with a few high profile misses. However, more companies are beating earnings estimates than the five-year average, but the sizes of those surprises have been a bit lower. Overall earnings growth is estimated to be 7.1% based upon actual report results and estimates for those that haven’t reported yet, which is below the five-year average of 8.9%, and the first quarter with single-digit earnings growth since Q4 2020, assuming current trends hold.

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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.