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Investing in the 'Underbelly of Life'

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  • Description

    RBC Wealth Management senior vice president Reva Shakkottai on gamblers flocking to Macau.

  • Duration 3:40
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Not ourselves.

All right -- your clients she is known as the grave dancer that's because she looks for stocks and bonds in the underbelly of life and in areas where customers have no choice.

But to buy the product -- tobacco gambling guns and cancer care we're joined from Los Angeles by rave -- shopping time RBC wealth management -- just back from a trip to the new gambling capital of the world.

Macau hello raven thanks for being with us how did your trip go and what it IDC to come back with for making money.

-- great still jet lagged.

It's amazing that -- -- in the last ten years.

Has grown from a little landfill off the coast of Hong Kong to the gambling capital of the world -- time to revenue of Las Vegas last year.

It's it started out as a a gambling area where there were no hotels no entertainment that's really spreading to -- -- -- type of atmosphere.

Really the focus is on VIP gambling.

Really serious -- for gamblers that come there just to smoking gamble and on their merry way.

And there's -- casino operators and -- Macau all of them have a very different focus.

But all of them share in the same -- of revenue which is growing.

Have last year 42% and this you're expected to grow at double digits as well.

That's right you've got to compounded growth 30% a year last ten years -- -- -- every 33 billion dollars up 42% last year.

Now let's have a little -- gambling stocks that are all in the coat -- strip I believe when that MGM.

LBS.

And AM PL tell you say that the -- type strip is the clear source of further growth are those companies applying -- to build still more casino space on that strip.

Oh absolutely as I mentioned hotel used to be a land -- But when you look at where the new bridge from the mainland China.

To Macau is being -- it's it's coming up to.

The border of the coat -- strip if you look at where the high speed rail is going to be stopping it securitized strip.

Right now there's only five of the 35 casinos on the couch in -- -- And that would be galaxy.

-- and and and but all of these six operators have filed to I either expand or initiate hotel development projects and casinos Inco -- His -- has the biggest presence in -- -- right now but over the next several years all of the six operators can be building there.

Within -- severe -- alright to -- you keep a watch on that you know that this is largely a Chinese gamblers story right -- a billion people live within a three hour flight.

Of Macau and this is massive -- rich tourists from out for this is Asia getting wealthier.

It sure is and and and yet say that further half of the world's population lives within a five hour flight so that's like flying from -- in New York.

And you have half the world's population that can get there in that amount of time.

And Britain and -- story is one of the rise of the Chinese middle class -- been raising the standard of living.

Among their resident and in that regard -- is the humor.

Yup whereas we have other hopped -- -- to.

Play much John and gatherings even -- right yeah channel -- and -- gambling in Las Vegas.

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