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Four-line chart showing rent growth in various sectors of real estate. Chart subtitle: Industrial and multifamily rent growth has outpaced inflation; retail and office have not kept up with increasing replacement, capex, and maintenance costs. Chart visual description: Y-axis shows Real Rent Growth, ranging from -15% to +10%. X-axis shows years from 2001 to 2022. MultiFamily line is green, Industrial line is brown, Office line is blue, and Retail line is slate. Chart data description: Since 2020, both office and retail have declined, though both experienced a slight period of growth in 2021. MultiFamily declined during the 2020 downturn, increased to a peak in 2021, but has decreased this year. Industrial has held relatively stable and though it declined in the pandemic, has nearly recovered. Chart sources: CoStar, JP Morgan Chase Research as of June 30, 2022. Real rent growth is defined as the year-over-year change in property rents less inflation.

08.09.2022

To Inflation and Beyond

Real estate as an asset class is not immune to the effects of inflation and rising rates, but certain sectors…

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Combination column and line chart showing U.S. GDP Growth, year over year, and Personal Consumer Expenditures (PCE) contribution to GDP. Chart subtitle: In only the mildest recession over the last 50 years did PCE not turn negative. Chart visual description: Y-axis spans percentages from -15% to +15%. X-axis shows dates from 1Q1970 to 1Q2021, though data is through 2Q2022. Recessionary periods are shaded in light grey, with 8 marked in the time period shown. Green columns display Real GDP YoY. Teal line displays PCE Contribution to GDP. A note on the chart notes that data during 2020 exceeds the bounds of the chart area, as the PCE line went negative to -24.1% in 2Q20, and positive to +25.5% in 3Q20. Chart data description: As explained in the text, one common definition of a recession is at least two consecutive quarters of negative GDP growth, and the GDP columns coincide with each recessionary period, going negative a two quarters before a recession, then going positive, then fully falling within the recession shading. The first two quarters of 2022 both had negative GDP YoY. The PCE line also corresponds to the text’s explanation. Though the recent quarters have seen a slight decrease, PCE is still positive as of now. Historically, however, it has turned negative preceding recessions, except for 1991’s. Chart Source: U.S. Bureau of Economic Analysis as of June 30, 2022.

08.03.2022

Recession Redefined

The National Bureau of Economic Research (NBER) is widely considered the official judge on what is and is not a…

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07.29.2022

The Currency Conundrum

The U.S. dollar is the strongest it has been in a generation. The U.S. dollar index is up almost 11%…

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07.28.2022

Halftime Market Outlook: A Mixed Bag

Last week, we hosted our “Halftime” Market Insights Webinar. As the host, my job was to introduce…

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07.21.2022

2022 Halftime Market Insights Video

This video is a recording of a live webinar held July 20th by Marquette’s research team, featuring in-depth analysis of…

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2-line chart showing Crude Price and 3:2:1 Crack Spread. Chart subtitle: Record high crack spreads on top of higher crude prices are behind $5 gasoline. Chart visual description: Left Y-axis is labeled "Crude $/bbl" and ranges from $0 to $160. X-axis shows dates from July 1992 to April 2021, though data is through June 2022, and is shown in 15-month increments. Right Y-axis is labeled “3:2:1 Crack Spread $/bbl” and spans $0 to $60. First line is purple and represents WTI Crude Oil. Second line is tan and represents 3:2:1 Crack Spread. Chart data description: WTI Crude Oil line starts at $21 at far left, with a few peaks and valleys in the years since 1992. The peak, in June 2008, hit $140, with the next highest peak beyond 2008 in May of 2022, at $114. June 2022 price was $105. Crack Spread Line is more volatile over time, with July 1992 data at $2.65. Peak was in June 2022, at $47.65, with April and May closely following. Prior peak was in August 2005 at $46.62. Chart source: Bloomberg. End chart description.

07.19.2022

Oil Prices Aren’t All They’re Cracked Up to Be

Americans are paying more at the pump this summer than they ever have in the past. The national average in…

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07.15.2022

Sustainability Briefing – 3Q 2022

Sustainable investing is not new to Marquette. Ranging from mission-driven screening to minority-owned investment manager utilization, Marquette has been partnering…

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07.13.2022

The Business Cycle Diaries

Even the casual observer of market dynamics is likely aware that the world economy appears to be on uneven footing….

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Combination column and line chart showing outperformance by active managers in 2022. Chart subtitle: Value managers have largely outpaced their respective benchmarks this year, though the same cannot be said for growth-oriented strategies. Chart visual description: Y-axis is labeled "Percentage of Active Managers Outperforming" and spans from 0 to 100%. X-axis shows manager categorizations corresponding to columns, in abbreviated format on the chart but spelled out in this description, from left to right: large-cap value, large-cap core, large-cap growth, mid-cap value, mid-cap core, mid-cap growth, small-cap value, small-cap core, and small-cap growth. Each category has a column for month to date (very dark blue), quarter to date (dark blue), and year-to-date (blue). An orange dashed line crosses the chart data representing the long-term average. Chart data description: All cap value and core strategies have over 50% of active managers outperforming in each column; growth strategies have struggled comparatively with all categories except mid-cap growth QTD with less than 50% outperforming. Mid-cap value has the highest percentage charted, with 90% outperforming year to date. Large-cap value has the lowest charted data with 26% outperforming year to date. Chart source: Morningstar Direct as of June 30, 2022. End chart description.

07.12.2022

Active Managers: The Mid-Year Report Card

Domestic equity indices suffered significant pullbacks in the first half of 2022 amid increasing investor concerns of a prolonged economic…

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