Reopening Revival? REITs And Homebuilders Add To Rally
U.S. equity markets added to their "reopening rally" this week as states and countries around the world continue to lift lockdowns while new cases of coronavirus continue to decline.
The S&P 500 ended May with gains of roughly 4% following a robust rally in April, driven by signs of an economic rebound, particularly in the all-important U.S. housing markets.
REITs and Homebuilders have been among the biggest beneficiaries of the successful economic reopenings. Equity REITs added another 5.2% to last week's 7.0% rally while Homebuilders jumped another 4.5%.
Housing data this week continued to form the early contours to a "V-Shaped" recovery. New home sales smashed expectations while home purchase mortgage applications have surged back above pre-pandemic levels.
Don't fight the Fed, or the Federal government. Personal Income growth surged in April as WWII-levels of fiscal stimulus and unprecedented levels of monetary support temporarily offset a sharp decline in economic activity.