Capital Alert: August 10, 2018

Capital Markets Still Showing Tremendous Appetite for Investments in CRE

Entering the second week of August, we see the S&P 500 less than half a percent away from reaching 2872, its record high set in January of this year. Corporate earnings have been particularly strong even though trade tensions have been simmering this summer. A positive sign for treasuries today is the US Labor Department’s Producer Price Index (PPI) was unchanged in July, as economists were forecasting a 0.20% increase. The yield on the 10-Year US Treasury fell today to 2.93%. Crude Oil prices have been falling in recent weeks due to increasing inventories. It’s interesting to note the US should achieve energy independence next year and become a net exporter of oil in 2021. Overall, the capital markets are still showing a tremendous appetite to make both equity and debt investments in multifamily and commercial real estate.