- Alex Pettee, CFA
Real Estate Revival? REITs Rebound As Curve Flattens
U.S. equity markets posted their strongest weekly gains in decades amid evidence that the "coronavirus curve" is flattening. Models projecting the death toll from coronavirus have been revised drastically lower.
Still 18% below recent highs, the S&P 500 surged by 12.1% while the Dow Jones added 2,600 points on the best week for the large-cap indexes in nearly 50 years.
Real estate revival? Equity REITs, Mortgage REITs, and homebuilders all posted their best weekly returns on record, rebounding following a punishing March that saw valuations dip to historic lows.
Several REITs provided updates this week, indicating that rent collection issues - so far - haven't been as dire as feared. Mortgage REITs, meanwhile, reported positive updates on book values.
Unemployment data showed that nearly 17 million Americans - 10% of the workforce - have lost their jobs over the last three weeks, prompting ever-louder critique over the justification behind economic shutdowns.
