Monday, Aug 01

Weekly Talking Points for Financial Advisors (8/01/2022)

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:

Q2 GDP shrank at a 0.9% annualized rate, the second decline in a row. Consumer spending slowed but continued to grow in the face of rising prices. Surging exports also helped though businesses have significantly curtailed investment amid the uncertain environment. In addition, weakness in real estate spending and a drop in inventories and government spending also weighed on GDP.

The Fed raised rates by 75 basis points, putting the target range at 2.25% to 2.50%. While expectations had bounced over the last few weeks, ranging from expecting a 100 basis point hike, immediately before the meeting, the market was placing its bets on the 75 basis point hike. The market reaction was interesting, with equity markets significantly rallying in the afternoon following the announcement and yields falling at the short-end of the yield curve.

Earning season is just over halfway done, and results are showing slower than average growth rates, but still resilient top-line growth. Just over 77% of S&P 500 companies grew sales, and 63% grew earnings. Overall growth has been a 13.8% revenue increase and 6.0% earnings increase. Versus analyst estimates, 60% of companies reported sales above estimates, and 74% reported earnings above estimates.

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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.