Major equity indices lagged in second quarter 2011, with the S&P 500 marginally positive on a total return basis, and the Russell 2000 marginally negative.
Equity REITs continue to outperform on a quarterly basis, although trailing private real estate for the first time since 2Q2010. It should be noted that the NAREIT index is levered while the NPI is not.
The transaction-based Moody’s/REAL Commercial Property Price Index (CPPI) moved upward in May by 3.6 percent for the first time since November. The index is down 8.7 percent since December; properties in the top cities are experiencing much stronger performance.
Inflation accelerated in the first half of the year, through May,but slowed thereafter. Strong commodity prices promoted stronger growth, but prices have since cooled some. Overall,the economy remains in a state of disinflation.
Source : RREEF