Farewell, Bull Market [Daily Recap]
- Erasing yesterday's substantial gains, it was another punishing day for global equity markets after the World Health Organization officially declared the ongoing coronavirus outbreak a "pandemic."
- Coming off gains of 5.1% yesterday, the S&P 500 finished lower by 4.9% while the Dow Jones Industrial Average lost more than 1,400 points after yesterday's 1,160 gain.
- Erasing yesterday's 4.2% gain, the broad-based Real Estate ETF (VNQ) finished lower by 6.0% with all 18 REIT sectors in the red, dragged down by double-digit losses from prisons and hotels.
- On the bright side, the Mortgage Bankers Association reported a historic surge in mortgage applications. Refinancing surged nearly 500% year-over-year while purchase applications were surprisingly strong as well.
- Owing to the harsh lessons learned during the financial crisis, both REITs and homebuilders have been exceedingly conservative with their balance sheet and strategic decisions in the post-recession period.
Real Estate Daily Recap
Erasing yesterday's substantial gains, it was another punishing day for global equity markets after the World Health Organization officially declared the ongoing coronavirus outbreak a "pandemic" while a potential stimulus package appears to face an uphill political battle. Coming off gains of 5.1% yesterday, the S&P 500 ETF (SPY) finished lower by 4.9% while the Dow Jones Industrial Average (DIA) lost more than 1,400 points after yesterday's 1,160 points advance. Erasing yesterday's 4.2% gain, the broad-based Real Estate ETF (VNQ) finished lower by 6.0% with all 18 REIT sectors in the red, dragged down by double-digit losses from prison and hotels.
