< 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? >
I don't think so. I don't think the Fed will be able to raise rates throughout '05 without stalling the economy. The eco is already slowing. But I think the Fed will try, and the economy will stall. Health REIT's will be the place to be.
There's a lot of fast house buying where buyers are picking up a discount from a developer. They want to be first so they can flip it to late comers at a much higher price. Those people owning a 1/2 built home when the housing music stops playing are going to be in a big jam. Housing has been the main economic driver to date fueled by refi's, easy credit to uncreditworthy first time home buyers, and speculators. I don't think it will last much longer. Housing and the eco will probably take a dive in '05.