SQFTP - Mandates Inflation And Earnings

• U.S. equity markets were mixed this week as disappointing "big tech" earnings and concerns over controversial COVID vaccine and mask mandates were offset by historically strong earnings results from domestic-focused companies.
• Retreating from the record-highs set last week, the S&P 500 slipped 0.3% on the week but the Small-Cap 600 rallied 1.8% and the Mid-Cap 400 advanced 1.2%. The tech-heavy Nasdaq dipped 1%.
• Real estate equities continued their strong performance following an impressive slate of earnings results and strong forward guidance - particularly from residential REITs and homebuilders.
• The political tightrope on further fiscal expansion got ever-thinner this week after the core PCE Index - the Fed's "preferred" gauge of inflation - rose at the highest rate since 1992 while consumers remain highly concerned about rising prices.
• Don't expect inflation to cool anytime soon. Sunbelt-focused REITs reported average rent growth on new leases of 20% in July while Home Price Index data showed that home prices have risen more than 15% over the past year.

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