The Rotation Into Real Estate Continued In August

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• US equity markets snapped their four-week losing streak as economic data and retail earnings indicated that the US consumer remains resilient despite the growing drumbeat of recession calls.
• Investors and consumers remain on edge, however, as trade tensions are likely to persist into 2020. Funds continue to flow into the domestic-focused, defensively-oriented sectors, including real estate and utilities.
• REITs and Utilities, each climbing roughly 4% in August, were the lone US equity sectors in positive territory this past month as the S&P 500 finished lower by 2%.
• While home sales trends have turned positive this year, individual data points remain choppy. Pending home sales missed estimates this month as lack of supply continues to restrain potential growth.
• Incomes are finally outpacing home price appreciation, welcome news for the millions of millennials set to enter the housing markets in full force during the 2020s.