Supreme Uncertainty Hits REITs

Daily Recap

• U.S. equity markets finished broadly lower on another volatile week, pressured by "supreme uncertainty" amid a contentious U.S. election season and lingering coronavirus concerns as we enter the colder months.
• Declining for the fourth-straight week following a six-week winning streak, the S&P 500 dipped another 0.6% this week and is now roughly 8% below its all-time highs set last month.
• This "supreme uncertainty" weighed on real estate equities and other economically-sensitive sectors this week. Equity REITs finished lower by 3.1% this week with 17 of 18 property sectors in negative territory.
• New Home Sales topped estimates, surging 43% in August from last year to the highest annual rate since 2006, another sign that the housing industry continues to lead the economic recovery.
• While the housing industry rebound has shown continued resilience, there are signs that the rebound in labor markets may be losing some steam ahead of a critical week of employment data - the final jobs report before Election Day.

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Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.