I’m rarely at a loss for my weekly observations – especially post inauguration – with this week being no exception. Without further introduction, I’ll dive right into current headlines and my take on the impact to investors.
The Paris Accord
The only positive I can see is that a campaign promise has been fulfilled. With several multi-nationals aligned in favor of the accord, no penalties for failure, standards being self-determined – the obvious downside is to be ostracized on the world stage. Withdrawal (which would only be effective after Trump’s first term) only further abdicates the US role as a leader in the world and gives voice to potentially adding teeth to where there are none (as in Nicaragua’s position). Perhaps a worldwide carbon tax assessed against companies of non-signatory nations? One has to wonder about a future where a rogue nation such as North Korea (signed) appears to be more forward thinking than we are. And no, Mr. Trump, coal is not poised for a comeback. While the opposition is forming, perhaps we’ll next see a domestic battle regarding state rights versus interstate commerce? Still too early to tell, but could this be another reason to diversify into foreign issues?
On another note, in reviewing DivHut’s June Watch list (Jun 2nd), I found myself cycling between his reference to HCP and an article this morning in the Dallas Morning News regarding Walnut Hill Medical Center. I’ve been cautious on health care recently evidenced by the comment stream in my recent post. Although not a REIT, this for profit (reportedly part owned by HSTM) hospital closed its doors without notice. One reason cryptically given:
The Medicare provider agreement between the hospital and the Secretary of Health and Human Services terminated on June 1, 2017 in accordance with the provisions of the Social Security Act.
Perhaps, Vivianne, I do have a crystal ball. 🙂 The reality is that there is too little clarity between governmental actions and reality for my comfort right now.
Like DivHut, I’m waiting for a pullback while averaging down some positions. Looks like I’ll stay in the States since the US dollar is continuing its retreat.
Update: 11 Jun 2017 – This facility appears to have attempted to skirt the Federal Stark law by being classified as physician-invested vs. physician-owned allowing for government reimbursements. The corporate structure appears to have been an unnamed development company (perhaps in conjunction with HSTM) with practicing physicians as the shareholders of said development company. Bankruptcy was filed on June 6th. With no word of foul play, this appears to be a case of mismanagement (not enough liquidity).