Alex Pettee, CFA
Signs Of Life From REITs
U.S. equity markets surged to their best week since 2009, ending the shortest bear market in U.S. history after the successful passage of a massive $2 trillion economic stimulus package.
The gains came despite a historic Initial Jobless Claims report in which nearly 3.3 million Americans filed for unemployment claims, nearly five times above the peak of the Financial Crisis.
Following declines of nearly 25% over the last two weeks, the S&P 500 recovered nearly 11% while the Dow Jones clawed back nearly 2,500 points after last week's 4,000-point plunge.
After plunging over 35% during the prior two weeks, equity REITs delivered their best week on record, surging more than 16% while mortgage REITs bounced-back from the brink with 11% gains.
Homebuilders and residential REITs delivered particularly strong weeks as investors and analysts digested the potential impacts of the stimulus measures, which should help to support a healthy housing market.