Farewell, Bull Market [Daily Recap]
Erasing yesterday's substantial gains, it was another punishing day for global equity markets after the World Health Organization officially declared the ongoing coronavirus outbreak a "pandemic."
Coming off gains of 5.1% yesterday, the S&P 500 finished lower by 4.9% while the Dow Jones Industrial Average lost more than 1,400 points after yesterday's 1,160 gain.
Erasing yesterday's 4.2% gain, the broad-based Real Estate ETF (VNQ) finished lower by 6.0% with all 18 REIT sectors in the red, dragged down by double-digit losses from prisons and hotels.
On the bright side, the Mortgage Bankers Association reported a historic surge in mortgage applications. Refinancing surged nearly 500% year-over-year while purchase applications were surprisingly strong as well.
Owing to the harsh lessons learned during the financial crisis, both REITs and homebuilders have been exceedingly conservative with their balance sheet and strategic decisions in the post-recession period.
Real Estate Daily Recap
Erasing yesterday's substantial gains, it was another punishing day for global equity markets after the World Health Organization officially declared the ongoing coronavirus outbreak a "pandemic" while a potential stimulus package appears to face an uphill political battle. Coming off gains of 5.1% yesterday, the S&P 500 ETF (SPY) finished lower by 4.9% while the Dow Jones Industrial Average (DIA) lost more than 1,400 points after yesterday's 1,160 points advance. Erasing yesterday's 4.2% gain, the broad-based Real Estate ETF (VNQ) finished lower by 6.0% with all 18 REIT sectors in the red, dragged down by double-digit losses from prison and hotels.
