Inflation Is Worse Than It Looks
U.S. equity markets snapped a five-week winning streak as red-hot inflation data showed that consumer prices soared at the fastest rate in decades, sparking a sell-off in longer duration assets.
Retreating from record-highs set last week, the S&P 500 slipped 0.3% this week as investors rotated out of tech stocks and piled into inflation-hedging asset classes including gold and bitcoin.
Real estate equities were mixed on the week as strength from housing sectors - one of the best inflation-hedges - was offset by weakness among retail and hotel REITs.
Concerns over inflation sent the University of Michigan’s consumer sentiment index tumbling to a 10-year low in the preliminary November reading - significantly worse than expectations.
We saw a busy week of M&A news in the REIT sector as two data center REITs - CoreSite and CyrusOne - are acquisition targets while hotel REIT CorePoint was taken private while single-family rental REITs eye Zillow's portfolio.
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