LAMR - Inflation Is A Problem

• U.S. equity markets edged to fresh record-highs this week, shrugging-off the "fourth wave" of the COVID pandemic and another round of red-hot inflation data that has weighed on consumer sentiment.
• Real estate equities delivered a mixed week - but remain the top-performing asset class in 2021 - as a historically strong second quarter earnings season wrapped-up with several strong reports.
• The BLS reported that both consumer and producer prices climbed at hotter-than-expected rates in July but showed some hints of moderation following three of the hottest months on record.
• Calling into question the fate of the infrastructure package that passed the Senate this week, the public appetite and political support for additional fiscal expansion continues to deteriorate.
• Soaring rents are just beginning to filter into the inflation metrics. The BLS reported that rents rose just 1.9% in July while residential REITs reported rent growth averaging roughly 10%.

For further details see: