U.S. equity markets rallied to fresh record highs this past week as long-term interest rates retreated despite inflation data showing the highest annual rise in consumer prices in decades.A seemingly insatiable bid for Treasury Bonds - a counterintuitive trend that some analysts likened to a "short squeeze" - sent the 10-Year Treasury Yield lower for the fourth-straight week. Real estate equities led the way following a positive slate of REITweek updates and some major M&A news. Equity REITs rallied 2.5% on the week while Mortgage REITs gained 0.8%.
Incredibly, the recent surge in CPI inflation has come despite any significant positive contribution from the largest component in the consumer basket - shelter - which the BLS only surveys every six months. Residential REITs confirmed that rents are soaring in early 2021 as the red-hot home ownership market has seemingly "passed the torch" to rental markets as double-digit rent growth is now commonplace across many regions.
Source: Seeking Alpha
Related Articles:
Inflation Is Worse Than It Looks
Posted by D4L | Friday, July 02, 2021 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a v...
-
Dividend Kings, stocks with at least 50 consecutive years of dividend growth, are favorites of many income investors. High-dividend yields c...
-
This is a clear recipe for investors to follow, and will lead us quite naturally to two recent stock recommendations from Morgan Stanley’s a...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
Dividend reinvestment plans, or DRIPs, can be effective ways to accumulate shares of high-quality companies for those with limited capital t...
-
Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.