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Paul Pagnato, managing director and partner at HighTower’s Pagnato-Karp Group, on how investing in medical and storage facilities and student housin...
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And act now not all right -- has more of the US population heads to nursing homes and Generation Y.
heads to college our retirement homes and college dorms the place to invest your money.
Might make sense what my next guest says yes it does the some of the most recession resilient investments outlet poll but not a president -- partner managing direct precious -- -- promotion -- -- but not confident joins me is now pulled -- you like real estate.
But one in particular do you like.
-- we do actually did and and we.
We like the student housing sector we like storage facilities and medical facilities.
All three of them have proven through prior recessions to be very very resilient and the demographics are just fantastic.
OK -- -- if I'm interested in investing in student dorms which.
Student dorms drumming -- -- with these kids -- -- -- a tough time chamber clouds even gonna cons these days but.
Under the assumption the dorms of the place to be -- I do that delight alchemist landlord and buy some apartment houses.
Well that is one way to do it.
We prefer not to do that we prefer you be a little bit more diversified.
And -- from.
Student housing is different universities throughout the country so we are recommending to actually going to -- fond.
There are investments you can go into that will be.
Save half -- half a billion dollar investments fell diversify you threw out the student housing market.
These investments totally -- off about a 9% cash flow.
Interestingly you work with a lot of small businesses as well poll -- and -- what are they telling you what does that biggest concern right now.
Third biggest concern is the safety of assets.
Fall and there's a lot of uncertainty out there there is the fiscal cliff that's gonna ended the end this year the bush tax cuts.
Com there's uncertainty with the impending election coming up in November and so they're really concerned about -- the safety of their assets.
You know -- the positives that we've been hearing from a lot of people is that there's this little oil and gas boom going on right here and our own country North Dakota in particular.
And that I know that you think fracking is part of the reason -- part of the way at a great way people can make money so where are you suggesting people up put some cash and that.
We like the oil sector for that very reason lot of people are aware of about United States is the third largest oil producer in the world today.
And based on the new fracking technology we should emerge as the leader.
Sell the company -- -- we'd like in favor are the more small to mid cap oil companies.
All right we'll polar last time you hear was back on May fourteenth you said that we're in a bad market right now.
But we've heads that was -- on the down S&P four year -- how is that there's this market continues to.
Grind on the -- woods what do you put that down to.
It is amazing you need to give the Fed and our government a lot of credit so the quantitative easing programs that they have.
Put forward have have worked so then continuing to keep interest rates low.
Then continuing to reduce stimulant activity buying back treasury securities buying back mortgage backed securities.
Have really helped the markets in addition of that corporations have been extremely resilient.
There -- all time record highs as far as productivity and margins profits so -- credit credit really -- a good to.
A lot of that the people the Fed as walls the individuals running out -- in the corporation's.
-- but not a thank you so much for joining us appreciate it.
My pleasure thank you and we talked -- by this small fracking come -- on the show for precision drilling.
