Every month this year has brought major events for investors to digest, and August was no different. The month started with Fitch downgrading the United States’ credit rating to AA+ from the top-quality AAA rating.
Key Observations
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Fitch downgraded the United States’ credit rating to AA+ from AAA at the start of the month.
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Market volatility continued through the month and most major asset classes experienced negative returns. Higher interest rates due to sentiment shifting to a “higher-for-longer” mentality by the Federal Reserve was a main culprit for weak performance.
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Commercial real estate has garnered a lot of headlines as the “next shoe to drop” but taking a deeper dive reveals the asset class may be more resilient than it appears on the surface.