LMRK - Transitory Inflation? Not So Fast

• U.S. equity markets posted their biggest weekly declines since mid-June amid mounting worries that economic growth has hit a soft patch and continued dislocations and inflation throughout global supply chains.
• Declining in all four trading sessions of the choppy holiday-shortened week, the S&P 500 declined 1.7% this week while the Mid-Cap 400 slid 2.7% and the Small-Cap 600 dipped 3.0%.
• Following the best week for real estate equities since March, the Equity REIT Index posted its worst week in nearly a year, declining by 4.1% with every property sector in negative territory.
• An active week of equity issuance among several of the largest REITs contributed to downward pressure. Pullbacks related to routine secondary offerings often prove to be an effective "entry point" into high-quality REITs.
• Moderating inflation? Not so fast. Despite signs of apparent softness across most economic data points over the last month, producer prices surged by the fastest pace on record in August.

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