The End Of An Era

Summary

• U.S. equity and bond markets posted their best week since the November election, as benchmark interest rates tumbled after inflation data showed surprisingly muted pressures in December.
• Closing the books on the Biden era, the Trump Administration assumes the reins next week of a U.S. economy that has seemingly "held it together" through a myriad of headwinds.
• The worst four years of inflation and the first decline in "real" consumer incomes since the late 1970s paradoxically coincided with a robust period of job growth and historically low unemployment.
• REITs and other rate-sensitive market segments led the rebound this week following a punishing year-end sell-off that dragged into early 2025. The Equity REIT Index gained 4.8% on the week.
• After plunging more than 20% since late November, homebuilders rebounded as fourth-quarter earnings season began on a positive note. KB Home rallied 7% this week after reporting surprisingly strong demand trends and providing a positive outlook for 2025.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of RIET, HOMZ, IRET, ALL HOLDINGS IN THE IREIT+HOYA PORTFOLIOS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.