PECO - Fire And Ice
2025-01-12 09:00:00 ET
Summary
- US equity markets tumbled this week while benchmark interest rates surged to the cusp of multi-decade highs after a critical slate of employment data showed surprisingly buoyant labor market trends.
- Prompting a hawkish re-think of Fed policy expectations, inflation worries were further inflamed by surging energy prices amid frigid temperatures across the Central and East, while L.A. battled destructive wildfires.
- Real estate equities - the most rate-sensitive sector - were significant laggards this week as rate cut expectations soured, with REITs extending their year-end slide into early 2025.
- Good news is bad news? Capping a strong slate of employment throughout the week, payrolls data showed that the U.S. economy added 256k jobs in December - far exceeding consensus estimates.
- Los Angeles-focused Douglas Emmett (DEI) - which has two-thirds of its portfolio in the L.A. Westside area adjacent to the Palisades wildfires - dipped by nearly 15% on the week. Apartment REIT Aimco (AIV) was among the leaders after announcing that it's exploring a sale.
Real Estate Weekly Outlook
US equity markets tumbled this week while benchmark interest rates surged to the cusp of multi-decade highs after a critical slate of employment data showed surprisingly buoyant labor market trends in December, prompting a hawkish re-think of Federal Reserve monetary policy expectations. Inflation worries were inflamed by surging energy prices as temperatures were frigid across much of the Central and Eastern time zones, while Southern California attempted to contain a series of destructive wildfires....
Fire And Ice