VRAI - Money Is No Longer Cheap

• U.S. equity markets advanced for the second-straight week despite a surge in energy prices and soaring Treasury yields after the Federal Reserve reiterated the central bank's aggressive stance to combat inflation.
• Adding to their best weekly gains since November 2020, the S&P 500 advanced another 1.8% on the week, but the gains were quite "top-heavy" as the Small-Cap 600 slumped 0.7%.
• Pressured by the surging 10-year Treasury yield - which climbed to its highest level since late 2019 - real estate equities were among the laggards as the Equity REIT Index slipped 0.2%.
• Fed rate hikes are having the opposite of the intended effect on housing costs - the single largest component of the CPI basket - as mortgage rates recorded the largest 12-week jump in nearly 30 years, which will keep upward pressure on rents.
• The U.S. labor market remains a bright spot in an increasingly choppy economic environment as Initial Jobless Claims data today showed the fewest jobless filings since September 1969. In the REIT sector, Cousins Properties became the 61st REIT to raise its dividend this year.

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