As predicted in our previous article, the BLS inflation data continues to track the forward private sector data. It’s no wonder there is a growing consensus that the “Fed is done”[1].Source: Eurostat, Quay Global InvestorsNot unlike the rest of the world, Europe suffered a significant increase in inflation post pandemic. To us, valuations and the overall theme look increasingly vulnerable.Source: JLL research, Bloomberg, Quay Global InvestorsGreat investment themes always feel compelling, but ultimately, investors make returns from valuation. Excess industry capacity (vacancy rate) is usually overcome with steady population growth; however this will not be the case in Japan.The Japanese real estate market accounts for over 10% of the global listed real estate index (developed). Office remains the challenged asset class, however, to date, overall credit continues to flow to the real estate sector.As we close another year, as fund managers we often look back on our mistakes.

Source: The Guardian December 14, 2023 02:48 UTC