From Bad To Worse For REITs

March 22, 2020 | Hoya Capital

From Bad To Worse For REITs Uncategorized Mar 22 Written By There were few places to hide on another punishing week for global equity markets as the coronavirus-related shutdowns continue to wreak havoc on the global financial system. Despite unprecedented monetary policy action by central banks and promises of substantial fiscal stimulus, a forthcoming recession appears inevitable and unavoidable but hopefully short-lived. Following a decline of nearly 10% last week, the S&P 500 plunged another 15% while the Dow Jones dipped another 4,000 points on the worst week for stocks since 2008.

For real estate, this time "should" be different, but markets think otherwise. It was a historically bad week for any and all real estate-related equities. REITs plunged nearly 25% in their all-time worst week. Backwards-looking data, including Existing Home Sales, has shown that the U.S. economy - and particularly the U.S. housing industry - was firing on all cylinders in early 2020 before the coronavirus crisis. To continue reading, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Fed Fires Bazooka, Stimulus Stalls [Daily Recap] Next Next Did We Find The Bottom? [Daily Recap]