U.S. equity markets dipped in a volatile week, while benchmark interest rates pulled back from one-month highs, as renewed anxiety over stretched AI-driven valuations collided with mounting monetary policy uncertainty. Public commentary from Fed officials revealed an unusually fractured committee, with a divide that was deepened further by a mixed slate of employment data via the long-delayed S...
The REIT sector has seen back-to-back tough months as it saw a modest average negative total return in September (-0.73%) and fell deeper into the red in October (-4.03%). Small cap REITs (-5.05%) had the worst performance in October. Micro caps (-2.81%), mid caps (-3.11%) and large caps (-4.45%) were also in negative territory albeit to a smaller degree. Only 21.66% of REIT securities had a po...
U.S. equity markets stumbled this week as unexpectedly hawkish Fed commentary clashed with fragile risk sentiment, muting investor relief over the deal to end the longest-ever government shutdown. December rate cut odds dipped below 50% after Fed officials firmly pushed back on rate-cut expectations, citing uneven inflation progress, pockets of financial-market froth, and the economic-data blac...
Over 200 U.S. REITs and homebuilders have reported third-quarter earnings results over the past five weeks, providing critical information on the state of the commercial and residential real estate industry. Overall, REIT earnings results were marginally better than consensus expectations despite a handful of high-profile flops that overshadowed some impressive individual results across a balan...
REITs offer compelling value and income, with VNQ yielding 3.8% versus the S&P 500's 1.1%, and trade at historically wide valuation discounts. The current macro environment favors high-quality, undervalued dividend stocks, as falling long-term rates could boost demand for income-generating assets like REITs. REITs demonstrate strong financial health, stable dividends, and sector diversity, maki...
Alexandria Real Estate is rated Hold due to near-term headwinds despite an attractive long-term valuation and sector leadership. ARE faces multi-year oversupply, declining occupancy, and management guidance for a 27% FFO drop in 2026, raising concerns about dividend safety. While ARE trades at a low 8.5x forward FFO, a lack of catalysts and a possible dividend cut suggest waiting for stabilizat...
The first thing that comes to mind when we speak about the S&P 500 is the biggest tech companies, high valuations, and fastest-moving giants.
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