Better to get 7 to 10 percent yields off investments in farmland, self-storage, and student housing than invest in low-yielding Treasury bonds, says wealth advisor Paul Pagnato.
The Dow bouncing back from nearly 136. Point deficit from on markets we turn to pop and until. Managing director upon not a car at high tech. Paul welcome back it's really downbeat this morning but what's behind the markets turn it did. I think one of the factors there's been so much attention so much focus on energy particularly whale. And with we will stabilizing here sustainable. Wee hours of Merrill. I think that's put on line cities that triple its oil for a long term investors. Does that mean we're near. I. I don't think so I think we're still gonna see some more volatility. There are a lot of it's wrong deflationary forces so we are in a wait and see mode with energy and most commodities but longer term. I think you'll you'll you'll do well in apart the herbal health care we. There among the best returns so far this year and the valuations hydrant by all those deals those are. How much more and to gain we think so if you look at the the technicals all the fundamentals are extremely strong mess after all the best sector. Technically secondly you have structural reform occurring and then you have the strongest demographics the current health sectors that we think there's there's more room there. No one other errors in your interest is liquidity premium explain that for me and what sectors are we talking about you that we feel this is one of the of the greatest opportunities we've seen over the last several years so if you buy a ten year treasury bond you earn a little over 2%. Right you can go into private investments. Hence the term liquidity premium that are paying 78910%. It's one of the biggest gaps that we've ever seen 567%. Gap. Between liquid investments and private that's what areas for example examples would be private real state. I cultural financing. Farmland. And then senior debt. Where you have the first you're receiving it says a bodily you receive the first payment whose ears like let's think we'll see what parts of realistic. Really the areas that are very recession resilient. Such as student housing. Such is self storage and also seniors seniors that. And and oneself one's senior living things because it is it's it's aging boomers and same thing with self storage you know my my folks recently downsized. And went to a Condo but they call it. Didn't want to roll away a lot of valuable that they had for 3040 years so what do they do they put it into self storage. The student housing. We like because the universities are just there out of space the. Derek yeah how they only for the first year and that's right all right things like all of your thoughts are things tape public not know of but not a car at high tower I'm Fred Katayama this is.