VPN - Real Estate Is Red-Hot

• U.S. equity markets climbed to fresh record-highs this past week amid relief over a peaceful transfer of political power and on economic data showing continued momentum behind the critical U.S. housing sector.
• Corporate earnings season is also off to a strong start, lifting the S&P 500 to gains of nearly 2%. The "stay-at-home" trade returned this week with the Nasdaq 100 surging more than 4%.
• Real estate equities delivered another solid week ahead of the start of REIT earnings season. Equity REITs and Mortgage REITs finished broadly higher while Homebuilders surged more than 10%.
• Housing Starts, Building Permits, and Existing Home Sales each climbed to the strongest rate in over 14 years in December as the residential real estate sector continues to be the stabilizing force behind the economic recovery.
• Prison REITs plunged after the federal government decided not to renew a lease on a correctional facility in Pennsylvania, underscoring a highly uncertain future for private prisons with Democrats now owning the "trifecta" of political power.

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