CTRE - Wall Of Worry Withstood For Now
2024-02-11 09:00:00 ET
Summary
- U.S. equity markets extended a seemingly relentless rally this week - lifting the large-cap benchmarks to gains in 14-of-15 weeks - as investors cheered AI-fueled tech earnings and encouraging inflation revisions.
- Breaking with recent correlations, the tech-driven advance withstood a rise in benchmark interest rates to two-month highs, hawkish Fed commentary, and a jump in oil prices to year-to-date highs.
- Real estate equities were laggards for a second week, however, as renewed rate headwinds and lingering concerns of loan distress offset a solid slate of REIT earnings results.
- Beneath the renewed rate worries, REIT earnings reports have been stronger than expected, with notable strength this week from some unexpected sources - regional mall, skilled nursing, and office REITs.
- Dividend hikes were a major theme over the past week, with nine additional equity REITs raising their payouts - lifting the full-year total to a dozen - while one mortgage REIT reduced its dividend.
Real Estate Weekly Outlook
U.S. equity markets extended a seemingly relentless rally this week - lifting the large-cap benchmarks to gains in 14-of-15 weeks - as investors cheered AI-fueled tech earnings and revised CPI data that confirmed inflation progress at the end of 2023. Breaking with recent correlations, the tech-driven advance withstood a rise in benchmark interest rates to two-month highs, indications from the Fed that it's content with a "high for longer" stance, and a jump in oil prices to the peaks of the year....
Wall Of Worry Withstood, For Now