Half way through December and my second tranche of buys have been made. It’s been a wild ride on the way up post election and the momentum doesn’t seem to have slowed down one bit. Sure, the ‘pause’ button may have been hit with the Fed raising interest rates but looking out longer term it seems that the ‘Trump Bump’ remains intact. We already have seen which sectors are benefiting from the recent run up in the market and which are being left behind. Clearly, any time the Fed hints at raising interest rates we already can expect a sell off in the REIT sector. In my December 2016 Stock Considerations post I had mentioned several consumer staples I was interested in picking up along with a couple health names including a couple in the health REIT space. With many consumer staples rising in recent weeks I was ‘steered’ towards the REITs. With that being said:
I have added to my IRA account 15.0 shares at $23.70 for a total investment of $355.50 in Care Capital Properties, Inc. (CCP). With this recent purchase my IRA account holdings in CCP now totals 36.4014 shares for a value of $861.99. This was a commission free trade.
I also added to my IRA account 15.0 shares at $29.16 for a total investment of $437.40 in HCP, Inc. (HCP). With this recent purchase my IRA account holdings in HCP now totals 107.3122 shares for a value of $3,113.13. This was a commission free trade.
I realize that these two purchases may not be the most popular names on the block as REITs, especially the health REITs, have really been crushed in the last month or so. Many stocks in the sector have come way down from their summertime highs as the whole health sector is seemingly under fire coupled with the fact that interest rates are finally moving higher in a meaningful manner. While it’s difficult to buy stocks that are under pressure for the foreseeable future that’s precisely the best time to initiate and/or nibble on positions as better prices, values and yields present themselves.
What do you think about my recent stock purchases in the health REIT sector? While the near and mid term outlook for this sector looks dicey, I still think that longer term (several years down the road) the sector as a whole will thrive. Please let me know below.
Disclosure: Long CCP, HCP