% | $
Quotes you view appear here for quick access.

Senior Housing Properties (SNH) Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • autoauto_1 autoauto_1 Jan 26, 2005 11:16 AM Flag

    Comment on Social Security discussion

    REIT's not looking very good recently. I would make a distinction between Medicare and Medicaid as a previous poster suggested. Medicare is in more trouble than Social Security. It certainly did not help that Mr Bush threw a drug benefit on top of it and failed to fund it. However this trouble is still down the road mostly (not on Mr Bush's watch). Medicaid is in much bigger trouble in the here and now. Unfortunately Medicaid has more baring on nursing homes than Medicare. Medicare will only pay for 3 months of nursing home care and then only after a hospital stay (I believe). Medicaid will pay indefinately for the financially qualified (the poor and those made poor by circumstance). However just another financial disaster...

    Seems like the market is waking up to interest rates. Could we see a panic raising dividend rates for health care REIT's to 10% or so before settling back to 8% as interest rate increases level off? Given the longer term history it's possible. Investors chased the REIT's till the dividend rates got too low. It seems reasonable to suggest that the rates will respond in mirror image and go a bit too high. I'm a long term holder of some, however I'll keep some of my powder dry and ready just in case to buy more... much later. It's times like these when it pays to have a diversified portfolio and not just interest sensitive investments. It's not just cash in your hand that matters IMHO.

18.365+0.225(+1.24%)11:57 AMEDT