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When you know -- right between the markets have just been on a terror this year the Dow the S&P the NASDAQ all up 1819%.
But small cap stocks in the Russell 2000 are doing even better up more than 23%.
So far this year.
Well the streak continue is now good time to abide do you dare let's ask Kathy -- CEO and founder of real wealth network.
And Hilary Kramer.
The president and C I -- of ANG capital.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I'll run that chart guys -- just to repeat you know the Dow up 18%.
The Russell 2000 small caps up -- -- 3%.
Why would you tell us to go ahead and start buying more small caps now.
Because -- there's opportunity in this small caps because so many investors haven't discovered then there's more value there's more growth opportunity.
And then -- has fallen angels those companies that were once mighty.
Get small cap and then find a way to build themselves back up.
That's where you have -- opportunity those big cats are overextended right now many of them yet Kathy what do you say -- that.
Well I don't like to gamble and I I don't like buying at the peak of anything so we I've seen far too many investors.
-- the peak.
Lose everything they have and then come to us and say you know now I wanna get into hard assets like real estate that's secured to something and I don't -- -- wake up with my money gone.
So I I am not -- -- I think -- caps are very risky right now.
And got up and why we love real estate and so are you saying that you also don't even like but tech stocks are big cap stocks.
-- I left you know it I there's a bit there's there was one time where I made it was not the right decision when.
My brother lives and told me about it company that happen to be Google right at the beginning I missed out about one.
But you know I'm a real estate person and and I know you've got me here on the show many times to talk about how to.
To get into hard assets that increase in value with inflation.
If if if the companies weren't doing well after all the money that's been poured in from the Fed I'd be shocked but that's clinic and soon and I think that's going to be trouble at.
Happy the big problem with real estate are now in don't think I don't own real estate myself it's an important part of the portfolio.
-- -- -- -- -- These days because it's impossible actually impossible to get a mortgage and with rates going up we've already seen that -- with some of the news today.
On initial house starts coming back down matter that's why the market was because now there's this there's this.
Consideration that it may have -- will taper because real think isn't doing well Kathy I'd be willing to bet that stocks do a lot better over the next five years than the value of your home in my wrong -- Dennis.
Well if you're looking at real estate.
As an investment it's a very different -- and investors.
Are actually coming in with cash in many places it's -- 50% of sales have been cash buyers so we're talking purely investment here.
And and so when you're looking up buying a house it's it's the cash flow that you get every month it's very different than -- stock.
You buy a house -- rented out you're getting -- come as much as 1012%.
I just bought a house in Cleveland near the medical area that's just booming.
And I paid 65000.
Dollars for that that house is renting for 900 dollars.
It you couldn't build it you could not build that same house for a 100000 and.
And housing starts were only down I -- think I think we have to where we should be but are fascinating when Hillary got his -- because a lot of rain.
How do you -- tough game to played out.
-- get on the on the land owner landlord I own property but as an individual.
You shouldn't be trying to get into the business of buying a home renting it out trying to get that -- so all you -- six months where someone decides not to pay and they can stay in that home.
That's again that is something that is an individual -- be very careful about where stocks are much more liquid you can go wind you can go out.
And and it's and it's an opportunity to build wealth and have ownership across the board is diversified way -- -- when he averaged an owning -- yeah it is -- you pay cash.
We've just you step into with a note to you know the thing of being a financial journalist is.
You off that are interviewing people who are far richer and more successful than you are so these two guys they own their homes they own second third -- that I'm renting in New York City so.
Hillary tell us where we should put money into the small caps.
-- -- know numerous opportunities I let the industrials in terms of small caps right now me of course -- opportunities across the board we have companies like innovative solutions and support.
Small cap stock.
About a hundred million dollar market cap but just -- -- sixty million dollar contract with Delta Airlines because I SSC has advanced technology.
That combined avionics and GPS navigation.
It's innovative it's it's technology.
Up as applicable to an area that still growing and yet clients want to try and love that OK when -- terror acts.
Which is -- and that's manufacturer of equipment like -- okay all right you know what -- in Iraq but there thank you so much for being with us Kathy and Hillary both appreciate your time thing.
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