Market Commentary | October 23, 2026

Over the last year, predicting the directions of financial markets seems to have been a fool’s errand. From an interest rate perspective, investors began with a consensus anticipation of a series of rate cuts, which morphed into doubt and then, over the last couple of months, a fear that 10Y yields would possibly hit 6%. From high to low, pricing on the Bloomberg Ten-Year Target ETF (XTEN) dropped 11.9% before popping up as much as 1.93% on October 22nd. With all the economic noise, it’s easy to bail out and get hurt.

Understanding What We Know

Our analysis is constant, which helps us cut through the noise and focus on what is actually happening in our sectors and specific companies.

As speculation emerged to capture profits that could arise from life-changing artificial intelligence, we focused on identifying which companies would power the revolution. We avoided the frenzy and steered toward the discipline and growth prospects of power producers like Dominion Energy (D) and WEC Energy Group (WEC).

When Welltower’s (WELL) stock soared on the demonstration that profits could be made from the arrival of the long-awaited Silver Tsunami of senior housing, we didn’t buy the inflated shares. We did the work and found the discounted preferreds of National Healthcare Properties (NHP) and held them for redemption at par. Because the wave of aging in America is long, we take advantage of market volatility to opportunistically trade shares of senior housing landlords like Healthpeak Properties (DOC) and Janus Living (JAN).

When, in 2025, Elme Communities (ELME) announced its decision to liquidate, we paid close attention to the details of the anticipated sale proceeds. This past summer, ELME described the schedule of liquidation, but market chaos was sufficient to price the shares materially below anticipated proceeds. The liquidation went off like clockwork, and we will now train our attention on Apartment Investment and Management (AIV) because AIV’s previously announced liquidation appears to have been completely forgotten. The shares are trading at about half of forecast proceeds.

Buckle up! It’s going to be a bumpy ride.

We can’t accurately predict election outcomes, geopolitics, or the direction of interest rates. We can study companies and trends, and position for eventual profits.

Notes and Disclosure

Articles are provided for informational purposes only. They are not recommendations to buy or sell any security and are strictly the opinion of the writer. The information contained in these articles is impersonal and not tailored to the investment needs of any particular person. It does not constitute a recommendation that any particular security or strategy is suitable for a specific person.

Investing in publicly held securities is speculative and involves risk, including the possible loss of principal. The reader must determine whether any investment is suitable and accepts responsibility for their investment decisions.

Commentary may contain forward-looking statements that are by definition uncertain. Actual results may differ materially from our forecasts or estimations, and 2MCAC and its affiliates cannot be held liable for the use of and reliance upon the opinions, estimates, forecasts, and findings in this article.

Past performance does not guarantee future results. Investing in publicly held securities is speculative and involves risk, including the possible loss of principal. Historical returns should not be used as the primary basis for investment decisions. Although the statements of fact and data in this report have been obtained from sources believed to be reliable, 2MCAC does not guarantee their accuracy and assumes no liability or responsibility for any omissions/errors.

We routinely own and trade the same securities purchased or sold for advisory clients of 2MCAC. This circumstance is communicated to clients on an ongoing basis. As fiduciaries, we prioritize our clients’ interests above those of our corporate and personal accounts to avoid conflict and adverse selection in trading these commonly held interests.

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