AGNC - Peak Inflation? Perhaps

Summary

• U.S. equity markets posted their best weekly gains since June as cooler-than-expected inflation data, election results suggesting "fiscal gridlock" in DC, and limited China re-openings raised hopes of peaking inflation.
• Climbing back out of "bear market" territory, the S&P 500 rallied 5.9% this week - continuing an unusually-choppy pattern with its fourth straight weekly move of at least 3%.
• Real estate equities - the sector with perhaps the most to gain for a potential Fed pivot - led the gains as a strong earnings season wrapped up with Equity REITs rallying 6.5%.
• Peak Inflation? Perhaps. The Consumer Price Index showed a cooler-than-expected increase in prices in October, indicating that inflationary pressures may finally be rolling over amid a broader global economic slowdown.
• Perhaps fitting on a week in which hopes of a long-awaited "return to normal" was the prevailing theme, the highly-speculative cryptocurrency market was dealt a potentially fatal blow this week after the collapse of a major exchange.

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