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All right we'll new construction spending numbers out today I and they were up four point up up up.
Four point 4% for the month -- in this could be is ultimately are starting.
Housing recovery that for those investors still find that housing sector -- too risky for them.
Kelly Zachary is the but -- balanced group co-founder has an alternative way to play the recovery housing market it ends of this a very interest in what you basically have.
And you have the fund that tracks it's -- local company.
-- it's not a fun just to put it into context where and -- and -- advisory firm focused exclusively on the chemicals industry.
So what we have -- -- the -- -- -- have alleged we have an index but more importantly we have a series of sub sectors of the industry and an index for each of those sub sectors so I can give -- an example.
This is the balanced global chemical index so it's 250 chemical companies being divide that and -- 33 sub sector -- York tracking.
As -- -- and -- -- tracking these.
With tracking the performance of companies that are in these sectors -- and so the numbers that came out today about housing -- not a told a surprise for us.
Because we've been tracking certain sub sectors for quite some time and -- noticed.
That you know volumes and activity have been growing -- -- -- -- -- sectors right now -- as far as performance.
With it to do with housing and what to do with housing if you look at paints and coatings couldn't look at -- and sealant that two sectors that are doing very well.
If most people when they look at a house that they think of breaks maybe they think of them that the would.
If when you when you look at the house -- actually consists of a whole host of chemicals including the policy paints and coatings insulation.
Roofing materials electrical cable.
Just a whole host of value wouldn't even kitchen counters.
Everything that goes into our house -- -- under construction post new construction a couple of large degree but also remodeling.
Okay but so when you look at the housing data like you said this morning's.
Housing that you were not surprised known by what you saw at all okay so you another you can name specific companies that we were cut taking a look at some of that these types of companies listed examples of -- mafia doesn't name sickening and our viewers.
Sense of context here.
Paintings and cutting you mentioned that -- -- -- sub sectors of some of the names that would that we saw Sherman Williams.
Valspar corporation RPM PPG industries and mean again these are just.
Thoughts ideas -- to -- am hoping.
And then as president he's in the stimulants RPM international HB Fuller 3 AM Illinois Tool Works and I mean do you think that -- -- the names enlisting are indicative of kind of what you're saying perhaps.
-- those those are the kinds of companies that are benefiting.
From this you have to remember of course the chemical industry is a bit of a Bellwether an early indicator of what's happening in the economy.
Where that far up the value chain the when companies building company's -- ordering materials that ordering a lot -- Then -- seeing them actually show up in the housing so that's why some of these stocks some of these sectors have been doing very well for some time so we're not -- not at all surprised.
When you see at number like in June new home demand actually there was actually decreased their -- you know does that give you upon us.
Or do you -- that you're -- ahead of the data that it it doesn't doesn't keep you up at night basically.
Look it doesn't give us pause because I think I think overall the market is gonna improve or we gonna have some ups and down -- Is it is it basically a slow growth scenario here.
Absolutely I think we're gonna be moving up in in small increments this is not going to be a dramatic improvement.
From one year to the next but that -- it doesn't give us pause for that reason because I think it's it's it's flat just to growing.
But not dramatically -- Kelly it's a very interesting way to structure.
An index yeah I misspoke earlier.
Business but that fascinating thank you very much that you -- was telling -- -- -- reform let's have a thanks.
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