Weekly Review: The Fed Disconnect

December 18, 2022 | Hoya Capital

Weekly Review: The Fed Disconnect Weekly Recap Dec 18 Written By U.S. equity markets slid to the lowest levels since early November this week after the Federal Reserve continued its historically-aggressive monetary tightening course despite mounting evidence of cooling inflation and contracting economic activity. Ending the week on a three-day skid that erased earlier gains of 3%, the S&P 500 declined 2.5% on the week. The Nasdaq pushed its year-to-date declines back over 30%.

Buoyed by a retreat in longer-term interest rates and another wave of REIT dividend hikes, real estate equities were among the better performers this week. Homebuilders rebounded alongside moderating mortgage rates. Another week, another wave of REIT dividend hikes and special dividends. Highlights of the week included a 12% hike from Mid-America Apartments and special dividends from Host Hotels and Hersha Hospitality. A pair of mREITs trimmed their dividend rates.

Peak Inflation? Sure looks that way. The CPI-ex-Shelter Index - perhaps the most reliable "real-time" inflation metric in recent years - was negative for the fourth month in the past five, among the most deflationary five-month periods in the CPI record. Real Estate Weekly Outlook Click Here to Read The Report on Seeking Alpha! Disclosure : Hoya Capital Real Estate advises two Exchange-Traded Funds listed on the NYSE. In addition to any long positions listed below, Hoya Capital is long all components in the Hoya Capital Housing 100 Index and in the Hoya Capital High Dividend Yield Index .

Index definitions and a complete list of holdings are available on our website. Hoya Capital Research & Index Innovations (“Hoya Capital”) is an affiliate of Hoya Capital Real Estate, a registered investment advisory firm based in Rowayton, Connecticut that provides investment advisory services to ETFs, individuals, and institutions. Hoya Capital Research & Index Innovations provides non-advisory services including market commentary, research, and index administration focused on publicly traded securities in the real estate industry.

This published commentary ...