Weekly Review: The Fed Disconnect

• U.S. equity markets slid to the lowest levels since early November this week after the Federal Reserve continued its historically-aggressive monetary tightening course despite mounting evidence of cooling inflation and contracting economic activity.
• Ending the week on a three-day skid that erased earlier gains of 3%, the S&P 500 declined 2.5% on the week. The Nasdaq pushed its year-to-date declines back over 30%.
• Buoyed by a retreat in longer-term interest rates and another wave of REIT dividend hikes, real estate equities were among the better performers this week. Homebuilders rebounded alongside moderating mortgage rates.
• Another week, another wave of REIT dividend hikes and special dividends. Highlights of the week included a 12% hike from Mid-America Apartments and special dividends from Host Hotels and Hersha Hospitality. A pair of mREITs trimmed their dividend rates.
• Peak Inflation? Sure looks that way. The CPI-ex-Shelter Index - perhaps the most reliable "real-time" inflation metric in recent years - was negative for the fourth month in the past five, among the most deflationary five-month periods in the CPI record.

Real Estate Weekly Outlook

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