Inflation's Last Stand

April 16, 2023 | Hoya Capital

Inflation's Last Stand Sector Report Weekly Outlook Apr 16 Written By Alex Pettee, CFA U.S. equity markets finished broadly higher this past week after a critical slate of inflation data provided further evidence of a definitive cool-down in inflationary pressures. After narrowly snapping a three-week winning streak in the prior week, the S&P 500 advanced 0.8% this week, while the Mid-Cap 400 and Small-Cap 600 posted gains of over 1%.

Real estate equities were among the laggards for a second-straight week, pressured by a rebound in benchmark interest rates, which rose despite the encouraging inflation news. The darker "underbelly" of the REIT sector dominated the news flow this week, which saw a controversial merger between two RMR-advised REITs, a turbulent direct listing of a previously non-traded REIT, and Blackstone unloading assets to meet redemptions. The closely-watched CPI-ex-Shelter Index - the metric that showed the historic surge in inflation a year before it was reflected in the headline CPI and acknowledged by the Federal Reserve - has actually been in deflationary territory over the past three quarters.

U.S. equity markets finished broadly higher this past week after a critical slate of inflation data provided further evidence of a definitive cool-down in inflationary pressures, which again revived "soft-landing" hopes. The closely-watched CPI-ex-Shelter Index - the metric that showed the historic surge in inflation a year before it was reflected in the headline CPI and acknowledged by the Federal Reserve - has been in deflationary territory over the past three quarters, raising questions over whether the Fed is again caught offsides.

READ THE FULL REPORT HERE Alex Pettee, CFA Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Earnings Begin • REITs Rebound • Week Ahead Next Next Storage REITs: Storage Wars Intensify