The aging of America makes this a good time to buy stocks of companies exposed to senior housing, says wealth advisor Ajay Gupta.
The S&P 500 briefly rising above thirteen thousand mark for the first time in three weeks just after the Fed released its minutes. Joining us now this thoughts on the market CIO age group of Gupta well that welcoming. Not just. There are thinking about raising rates in September but the thought of what's happening. Overseas from the meeting between another quarter for the next meeting and then decide so looks like there's still worried about oversees what are you telling your clients right now where place them right now we're not taking larger bets on stock market or less were actually recommending tore plants. When it comes to equities a portion of port pollution in the large dividend paying companies but not the high shielding. The companies that have been raising dividends consist of about 510% per year. Reason that is one core in the world complementing it. With small cap and micro cap US based companies that are not as susceptible what's happening alternate states you know that the Fed's worry about the global side. You're safe you're on the small caps that's what we believe. It's small cap stocks have draw I have are still in correction territory the Russell 2000 down 11% from its peak whereas SP 500 is down about 6% from its secret now. I'll. Are you bullish about. Small cap stocks in general this is time that they sort bonds now so from these levels right now as far as where there's value number one it's an acceptable what's happening in the emerging markets. The folks on the expanding content to the United States so we're bullish and were optimistic and rolled to speak at the Smart thing to add to the port oil we use small cap stocks wouldn't go pro. Are suffering today on top yesterday after Morgan Stanley nearly half. Its price target on that stock and the bills won the ones people. It seemed like momentum line. Are you fan of that stuff you know I'm not fallen let's stop close other than maybe it's on nonstop on TV media about. We're right now we're playing these small cap and micro cap we using the Russell 2000 index for the small cap. The reason the DFA micro cap strategy which is micro cap strategy. Which most people don't have much exposure to put that on been around since 1982 with a great track record that age you've got your home and office lovely San Diego were a lot of retired art people it. And you're keen watcher of demographics tell me about what you're seeing Democrats and how that should investors right now the United States suspects or the biggest demographic shift reversing. If forty million Americans rate 65 plus. Then there's going to be an eighty mile in the next 25 years so we can have we have 121000 people turning 65 years old so we can all realistic. That's focused on senior housing and that's an intelligent application for small portion of Brooklyn's portfolios as you it's your folks done seniors then. What about health care stocks Biotech stocks in particular trip plunged. Low late last month and this month as well healthcare stocks one big better performance but now taken a backseat. You would like health care but we're still neutral view on health care right now I think that like the aspects of senior housing because. Real estate it's not poorly with a stock markets and when he got the cup but demographic inevitability I just think tempers the volatility in the oval or play an athlete energy. What the worst performer so far this year in terms of sector performance but now let's is start to come back. We're human energies and right now we're expecting a big surge in its prices but we're expecting a major decline from the levels we have a neutral outlook on that right now. Okay thanks Jones thank you. Our thanks to it aging group does CIO and CEO and go to well now I'm Fred Katayama this is point.