Weekly Update, Jan 15, 2018

Set up this week – i am focused on interest rates more than equity risks / opportunities right now, so expect most of the posts to point to interest rate driven assets and not stocks

Interesting reads this week

Actions & Decisions last week

  • Bonds – i did not find any bond bargains i wanted within targeted maturity timelines – prices did not really drop sufficiently and i am not willing (yet) to go out beyond 2027
  • REIT –
    • removed my OHI position from IRA with profits – which was a key target.  I have no confidence in the business model of OHI until US Govt has a believable long-term plan for Baby Boomer healthcare.  I also decided to not increase my position in LTC, regardless of opportunity, for same rationale (the LTC decision to not invest more was difficult, as i have great admiration for the management team)
    • added to HCN in both non-taxed and taxed accounts – seems contrary to above bullet – but i see a huge difference in the business model and their reliance on public payments.  i do, however, acknowledge that HCN is a LONG play and i expect to see my capital decline in short term and i will just keep the DRIP alive
    • My REIT cash reserve is at 0 in IRA and nearing 0 in taxable – though if things continue to bleed in the street i may add to positions in IOT value chain (CCI or DLR)
    • GPT is my watch item in this segment, but i am still a bit cautious, as consumer consumption growth is required in this narrative and i am getting more and more skeptical on continued discretionary consumption growth (at least i am consistent with my rate / inflation outlook)
      • In the process of upping GPT status, i lowered STAG as the age of buildings and the lease durations do not bring the same level of risk mitigation that i see in GPT
  • Stocks
    • lost another bucket of Canada weed stocks due to their correction … i have made enough profit, however, that current positions are all recently acquired profits (last 3 months)
    • problem children
      • QTS – it’s a capital preservation concern … their Q4 earnings conference call should be a good tell for adding to or leaving the investment at lower prices
      • INTC – the security problem is not as conerning as the response to it … do i trust management sufficiently to maintain my investment?

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