Real Estate Leads Stocks To Records On 'Euphoric' Week
US equity markets continued to roll this week with fresh records across the major indexes, powered by "Goldilocks" economic data and resolutions on the U.S.-China trade deal and the USMCA.
With gains of more than 2.5%, it was the best week for REITs in nearly a year. Homebuilders surged 4.5%, leading the S&P 500 to gains of 1.9%.
The US housing market picked up in 2020 where it left off in 2019 with signs of continued reacceleration. Housing starts surged to 13-year highs while homebuyer traffic climbed to 20-year highs.
It was a strong holiday season for retailers. Total retail sales recorded 3.6% growth for full-year 2019. Brick and mortar sales, however, slowed to 2.1% growth following a strong 2018.
Despite indications of a pick-up in economic activity, inflationary pressures remain muted, as Core CPI and PPI came in cooler than expected in December. Core CPI ex-Shelter is higher by just 1.5%.