Weekly Outlook: Inflation Is A Problem
U.S. equity markets edged to fresh record-highs this week, shrugging-off the "fourth wave" of the COVID pandemic and another round of red-hot inflation data that has weighed on consumer sentiment.
Real estate equities delivered a mixed week - but remain the top-performing asset class in 2021 - as a historically strong second quarter earnings season wrapped-up with several strong reports.
The BLS reported that both consumer and producer prices climbed at hotter-than-expected rates in July but showed some hints of moderation following three of the hottest months on record.
Calling into question the fate of the infrastructure package that passed the Senate this week, the public appetite and political support for additional fiscal expansion continues to deteriorate.
Soaring rents are just beginning to filter into the inflation metrics. The BLS reported that rents rose just 1.9% in July while residential REITs reported rent growth averaging roughly 10%.
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