Patient Money
Strong economic news from March dashed hopes of a June rate cut and in response, the MSCI REIT Index declined more than 7% in April. Moderating CPI and jobs data earlier this month caused REIT prices to rebound significantly in May, but we want to emphasize that our investments are not motivated simply by the vicissitudes of interest rates or other macroeconomic metrics.
Two Sides to the Same Story
An inordinate amount of focus has been placed on which way the wind blows in relation to when the Fed will begin cutting interest rates.
Rotation
A Bloomberg report out earlier this week describing that interest rates have recently risen to their highest level this year reminds us of two things.
What was Old is New Again
No one would describe me as a rabid football fan and I’ve never gambled in a casino, but I somehow could not avoid getting swept up in all the hoopla leading up to Super Bowl LVIII in Las Vegas earlier this month.
Present and Ready
Last Thursday and Friday CPI and PPI reports were encouraging in demonstrating that inflation is moderating, but the battle against inflation continues. Inflation is our perpetual enemy because it erodes consumer purchasing power.