AGNC - Searching For The Bottom

Summary

• U.S. equity markets dipped to two-year lows on another volatile week as a disappointing slate of inflation data suggested that the potential window for an economic "soft-landing" may be narrowing.
• Declining in seven of the past nine weeks and finishing on the cusp of the lowest levels in two years, the S&P 500 declined another 1.4% on the week.
• The downward pressure on real estate equities continued this week as long-term interest rates climbed to the highest levels since 2008. The Equity REIT Index dipped 2% but Mortgage REITs rebounded.
• While headline inflation metrics were indeed ugly this week, the CPI ex-Shelter Index posted a third straight monthly decline, suggesting that "real-time" inflation is indeed decelerating even as headline metrics suggest otherwise.
• Hotel REIT Service Properties Trust surged more than 30% after it resumed its previously-suspended quarterly dividend - one of several REITs to raise its distributions this week. Over 110 REITs have raised their dividend this year while 7 have reduced payouts.

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