Half way through March and my first buys have finally 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 planning of 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 and this time it’s no different. In my March 2017 Stock Considerations post I had mentioned a new consumer staple I was interested in picking up (HRL) along with Care Capital Properties, Inc. (CCP) in the health REIT space. Going back to my February considerations I also mentioned initiating a new position in LTC Properties, Inc. (LTC). With many consumer staples rising in recent weeks you could say I was ‘steered’ towards the REITs. With that being said:
I have added to my IRA account 20.0 shares at $24.27 for a total investment of $485.40 in Care Capital Properties, Inc. (CCP). With this recent purchase my IRA account holdings in CCP now totals 56.8825 shares for a market value of $1,378.26. This was a commission free trade.
I also initiated a new position in my IRA account adding 10.0 shares at $45.32 for a total investment of $453.20 in LTC Properties, Inc. (LTC). 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 several months or so. Many stocks in the sector have come way down from their summertime highs as the whole health sector is seemingly under fire from government uncertainty impacting the industry 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 (years down the road) the sector as a whole will thrive. Please let me know your opinions below.
Disclosure: Long CCP, LTC