Peak Inflation? • Stocks Rally • Real Income Declines

May 27, 2022 | Hoya Capital

Peak Inflation? • Stocks Rally • Real Income Declines Real Estate Daily Recap May 27 Written By U.S. equity markets delivered broad-based gains Friday and for the week- snapping a dismal seven-week skid of declines- after inflation data showed signs of a potential peak in consumer prices. Posting its best weekly gains since November 2020, the S&P 500 advanced 2.5% today - pushing its weekly advance to over 6.6% - while the tech-heavy Nasdaq 100 rallied 3.2%.

Real estate equities were broadly higher as well with the Equity REIT Index gaining 2.6% today with 18-of-19 property sectors in positive territory while Mortgage REITs advanced 1.4%. Peak Inflation? The PCE Index increased 6.3% in April from a year ago, slowing from the 6.6% pace last month. Notably, the month-over-month increase of 0.2% in April was the smallest increase in a year and a half. Income growth has fallen significantly shy of inflation so far in 2020, pushing Consumer Sentiment to 10-year lows.

Remarkably, real disposable personal income is 20% below its peak in March 2021, which occurred at the height of the stimulus check distribution. Income Builder Daily Recap We recently launched Hoya Capital Income Builder - a premier income-focused investment research service through Seeking Alpha Marketplace - that will be the new exclusive home of all of Hoya Capital's investment research. Income Builder focuses on real income-producing asset classes that offer the opportunity for diversification, monthly income, capital appreciation, and inflation hedging.

If you're not already on board, give us a try with a completely risk-free two-week trial and take a look around. U.S. equity markets delivered broad-based gains Friday and for the week - snapping a dismal seven-week skid of declines - after inflation data showed emerging signs of a potential peak in consumer prices. Posting its best weekly gains since November 2020, the S&P 500 advanced 2.5% today - pushing its weekly advance to over 6.6% - while ...