Will Rent Get Paid? Shutdowns Hit REITs
- U.S. equity markets declined on another volatile week after employment data painted a grim picture of the state of the U.S. economy as the coronavirus shutdowns take a damaging toll.
- Initial jobless claims data showed that nearly 10 million Americans have filed for unemployment claims over the last two weeks amid government-mandated "stay-at-home" orders, a historically unprecedented two-week surge.
- A historically brutal first quarter that saw the major indexes dip by the most since the Financial Crisis came to a merciful close. The S&P 500 dipped another 2.1% this week.
- Rent is due, but will it get paid? Real estate equities were slammed this week amid speculation about how many individuals and businesses will skip their rent or mortgage payments.
- Are we flattening the right curve? Unemployment rates could spike to Depression-era levels if shutdowns persist into the summer, suggesting that poverty itself could become its own epidemic.
