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Strategic Wealth Associates CEO Jimmy Lee on the outlook for the health-care and telecom sectors.
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I've hit hard yesterday in trading after president Obama's Supreme Court -- but many are coming back today and our next guest says stick with health care sector.
Jimmy Lee is the CEO of strategic wealth associates and he joins us now.
Thanks for being with -- Jimmy Lee.
Other winners and losers in the health sector you like all health.
Well I think I think health care sector gives you a little bit more of a defensive play.
And -- and -- kind of economy we have right now -- -- a lot of those stocks provide good healthy dividends and we wanna get those dividends in this kind of economy.
Now was -- that the decline by the insurers yesterday is that a buying opportunity do you like insurers in the longer term.
No we're not specifically bullish on insurers and I still think that there's a law.
Out of -- as -- to come out about the what happened yesterday.
To figure out which way to play that health care sector yet -- big pharma was was.
Down not that much yesterday and this stocks are rallying today we think of that sector.
Again big pharma we we like that sector I think it's provides a little more of a defense of play.
As far as what you can invest into today and we really like those dividends.
Like the dividend paying stocks more than -- high beta stocks.
Right and why is it that Biotech.
Got hit harder than pharma did buy this Obama -- -- because it seems to be that it's a false distinction anyway plenty of big pharma does plenty of Biotech.
By the nature -- those -- start up nature of those -- Texas -- be more volatile.
Overall though I think the whole health care industry I think.
They say is gonna get two trillion dollars -- more money into that sector is so.
The -- be positive and along one -- health care companies rather see that now for something completely different.
You also like Telecom which is down 14%.
One particular ETF in the past quarter quite like it.
Again we like that dividends from some of the Telecom names -- -- -- anything specific.
But I think that we're gonna continue to see a lot of volatility with the headwinds that we have ahead of us.
This year -- even though we got some good news out of EU summit I think the eurozone crisis will continue on.
And then with the so called fiscal class with a combination of taxes scheduled -- -- in 2013.
And less government spending you know I think that's gonna continue to cause volatility.
So I think it's good for investors -- or net dividend didn't put that in their pockets -- -- recommend -- dividend stocks if I believe that they want the dividend tax rate to go up significantly so why go after dividend stocks instead of looking for stocks go up -- value that you can sell.
You know that's a good point in that something that we have to factor into making decisions about -- such -- companies but.
You know I think he's beginning that -- -- -- the nominal return of the dividend is more important that taxation of it although Woolsey what happens with the presidential election coming up again.
There's a lot of uncertainty out there investors don't like uncertainty in the market and you know the president's election going to be another big part of that this year yet it sure is.
And now one last -- -- about insurers.
You know any -- a huge sum of government funded money goes into any sector seems like the players' benefit he's insurance -- which we keep saying -- patients profiteers and and they've done bad things don't we think ultimately they gotta find a way to make a tonne of money on Obama -- that's supposed to cap their pricing.
You know -- we hope we hope there's a good balance there between the insurers.
And the F -- -- big pharmaceutical companies and better than a day.
You know the businesses need to make profit those big pharmaceutical companies have has -- a lot of money.
You know developing the drugs that they do and so.
That's it today I hope I'm not sure exactly how we're gonna end up I think there's just a lot of questions still that -- unanswered about obamacare and we'll see how that plays out for the rest of this year all right thank you very much for being.
