VPN - Inflation Is Relentless

• U.S. equity markets declined on another volatile week as red-hot inflation data and amplified tensions on the Russia/Ukraine border reversed early-week gains while data showed consumer confidence dipping to decade-lows.
• Ending the week with a volatile two-day skid, the S&P 500 finished lower by 1.8% this week while the tech-heavy Nasdaq 100 slid back into "correction territory" with a 3.1%.
• The growth-to-value rotation was on full display across the REIT sector as pro-cyclical sectors- hotel, timber, and office- rallied while technology REITs lagged as the Equity REIT Index declined 1.7%.
• REIT earnings season kicked into high gear this week and results were impressive, highlighted by seven dividend hikes. Shopping center and apartment REIT results have been particularly strong.
• Inflation Remains A Problem: Consumer prices surged at the fastest pace in nearly four decades in January, which translated into a slump in consumer confidence to the lowest level in over a decade.

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