Seniors Housing Weekly Update - Another October without the Market Spooked
October 29, 2013
Another October without the Market Spooked
The stock market usually doesn’t like October. Just look at October 27, 1997 when the Dow had its seventh biggest point loss, or October 19, 1987 when the Dow dropped 22% in one afternoon. But this year, with just two days left in onerous October, the S&P 500 has even been setting some records. How can this be? The market shrugs off the government shutdown and near collapse of debt ceiling negotiations, all in October? If that can’t spook the market, I don’t know what can. Oh, I guess another announcement about tapering the Fed’s billions of debt purchases to keep interest rates down would do it. But with consumer confidence dropping, and wholesale prices declining, there is little reason for the Fed to give any hint of raising interest rates. And that is good news for the seniors housing market, at least for now. But somehow it seems that we are just kicking this can down the road again and again, and the can just seems to be getting bigger. And when it finally breaks, or is too big to get kicked any further, watch out for ghosts of Octobers past. Happy Halloween.