• Done deal. US equity markets rallied to new record-highs after the U.S. and China signed Phase 1 of the long-awaited trade deal between the two largest economies.
• The S&P 500 gained 0.2% and the Dow Jones climbed 0.4% while the 10-Year Treasury Yield finished lower by 3 basis points to close at 1.79%.
• Yield-sensitive equity sectors led the way as the broad-based Real Estate ETF climbed by 0.9% with all fifteen sectors in the green, led by industrial, healthcare, and net lease REITs.
• After muted CPI inflation data yesterday, PPI data was much expected this morning. Core PPI is higher by just 1.29% year-over-year, the coolest rate since early 2017.
• Bottom Line: The 'Goldilocks' economic conditions of modest, domestic-led economic growth and muted inflationary pressures are ideal conditions for residential and commercial real estate outperformance.

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