VRAI - Good Riddance 2022

Summary

• U.S. equity markets closed out their worst year since the Financial Crisis with a fourth-straight week of declines as Treasury yields jumped back to seven-week highs on renewed inflation and COVID concerns.
• Dragging its full-year declines to nearly 20%, the S&P 500 slipped 0.1% this week while the tech-heavy Nasdaq dipped another 0.4%, shedding nearly a third of its value in 2022.
• The particularly rough year the yield-sensitive real estate sector ended with another week of broad declines with the Equity REIT Index slipping by 0.3% while Mortgage REITs dipped 6%.
• The Case-Shiller Home Price Index posted its fourth-straight month-over-month decline. Four markets have seen now home prices dip at least 5% from their recent peaks: Austin, San Francisco, Phoenix, and Las Vegas.
• The holiday week didn't slow down the pace of deal flow in the net lease space this week. Realty Income announced a $900M portfolio acquisition, while VICI Properties announced a $350M deal to finance the completion of a new Las Vegas casino.

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