The Strait Squeeze

Hoya CapitalInvesting Group LeaderFollow5ShareSavePlay(22min)CommentsSummaryU.S. equity markets fell for a fourth straight week, while interest rates jumped to eight-month highs, as continued turmoil in the Middle East rattled financial markets and revived inflation concerns.The third week of the Iran conflict settled into an uneasy equilibrium between escalation and de-escalation amid a continued standstill in the Strait of Hormuz, the key global energy chokepoint.The Federal Reserve - long bemoaning tariff-related inflation that failed to materialize - did little to calm markets, delivering a “hawkish hold” that pushed traders to price in rate hikes by year-end.The S&P 500 declined 2.1%, while gold prices plunged 10%. WTI Crude Oil managed to stay below the $100/barrel threshold, but global Brent crude surged 10% to over $112/barrel.Real estate equities - which had been holding their ground amid the recent resurgence in interest rates - finally came under pressure this week despite a wave of positive developments on the M&A front, including a successful IPO, a sizable REIT-to-REIT merger, and a handful of large-scale joint ventures.iREIT®+HOYA Capital members get exclusive access to our real-world portfolio. See all our investments here » Suphanat Khumsap/iStock via Getty Images Real Estate Weekly Outlook U.S. equity markets fell for a fourth straight week—while benchmark interest rates jumped to eight-month highs—as continued turmoil in the Middle East rattled financial markets and revived concerns about energy-driven inflation. TheThis article was written byHoya Capital36.52K FollowersFollowAlex Pettee is President and Director of Research and ETFs at Hoya Capital. Hoya manages institutional and individual portfolios of publicly traded real estate securities.Alex leads the investing group iREIT®+HOYA Capital. The service features a team of analysts focusing on real income-producing asset classes that offer the opportunity for reliable income, diversification, and inflation hedging. Learn More.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.

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