Real Assets bracket broader equities
In this edition of Liquid Real Assets (LRA) Market Update, John Vojticek and his team take a look at how public markets viewed listed real assets (real estate, infrastructure, natural resources and commodities).
Click below for the full report, including our Market Commentary, Why it Matters and:
Macro Dive:
Revisionist history
The Fed’s dueling mandate
To Hike or not to Hike, that is the question
Real Assets, Real Insights:
DWS recently released its mid-year regional real estate strategic outlooks
Bonjour les nouveaux voisins (Hello new neighbors)
A Fusion of interests
Market Commentary
Global equity performance landed in modestly negative territory at the end of our review period as markets attempted to find direction. The performance of our Real Asset Index (1) was essentially in line with global equities, as the underlying components bracketed broader equities. Natural Resource equities and Listed Infrastructure outperformed broader equities while Commodities and Listed Real Estate underperformed during the period.
The market’s listless action can be partially explained by generally weaker growth signals of late. The Citi U.S. Economic Surprise Indicator (2) has firmly established itself in the red, while the Bloomberg U.S. Surprise Indicator has even marked its lowest level since 2019. The weakness was particularly pronounced in many of the economic indicators that relate to private consumption. Construction activity indicators, such as housing starts, continued to weaken, although not falling off a cliff.
In the full report, we’ll address Why it Matters and take a Macro Dive look at revisions to the U.S.’ first quarter economic data, as well as May’s most recent data releases, followed by a selective check on global inflation. In Real Assets, Real Insights, we’ll start with a look at DWS’ recently released mid-year regional real estate strategic outlook, followed by an accretive addition to a Canadian REIT, and finally a takeover offer to harness the power of the atom.
Click here to read the full article.
This report is for professional/institutional investors only. To access, please validate accordingly and select "Global English” site for a smoother journey.
Any mentions of specific properties or securities are for illustrative purposes only and should not be considered a recommendation. Forecasts are based on assumptions, estimates, views and hypothetical models or analyses, which might prove inaccurate or incorrect. Past performance is not a reliable indicator of future returns.
(1) Real Assets Blended Benchmark, which is a proprietary DWS reference index comprised of the following blend of real assets indices:15% Bloomberg Commodity Index, 30% Dow Jones Brookfield Global Infrastructure Index, 30% FTSE EPRA/NAREIT Developed Index,10% Bloomberg U.S. TIPS Index, 15% S&P Global Natural Resources Index.
(2) An Economic Surprise Indicator measures the difference between expected economic data and the actual reported figures.
Source: Bloomberg as of June 26, 2024.