It has been an eventful week for markets following the U.S. Federal Reserve’s 50 foundation level fee minimize final week and the Dow Jones and S & P 500 benchmarks hitting report highs on Tuesday. As traders mull over learn how to play the market, Peapack Wealth Administration’s David Dietze revealed the place and what he’s betting on proper now. “There’s a variety of basic drivers which might be enjoying effectively for this market,” the managing principal and senior funding strategist on the U.S.-headquartered asset administration agency advised CNBC’s “Road Indicators Asia” on Wednesday. Dietze’s feedback come after the S & P 500 and Dow closed at report highs after gaining 0.25% and 0.20%, respectively on Sept. 24. The Nasdaq Composite gained 0.56% and is lower than 4% from its report excessive. All three averages are on observe for a optimistic September, regardless of the lingering fears of a slowing economic system after final week’s fee minimize. “What we acquired final week could be very uncommon to have a change in Federal Reserve coverage that near the election. The final time we noticed that [was] in 2008 once we have been within the deep throes of the monetary disaster, that was justified,” the veteran investor mentioned. He expects the Fed to chop rates of interest additional by 25 to 50 foundation factors in November and December. In opposition to this backdrop, Dietze’s mentioned his funding technique includes evaluating the well being of firms primarily based on their upcoming outcomes for the third-quarter. “I all the time have a look at earnings as an important purpose why you purchase a inventory, and we’re forecasting an enormous spike in earnings by This autumn. [In] 2025, we’re a 14% leap in earnings.” Favorable valuations Small-cap shares are one space Dietze is watching carefully, provided that they’re buying and selling at a “low cost.” Curiosity in small-cap shares picked up in July and whereas the outlook has been blended, he likes that “valuations are favorable” proper now. The Russell 2000 index – which captures the efficiency of small-cap firms within the U.S. that derive most of their revenues domestically – is up 9.5% year-to-date. “Technicians level to small caps outperformance upon [Fed Chair Jerome] Powell’s declaration that the time has come for fee cuts, with small caps up 3% on overwhelming quantity not often seen earlier than,” Dietze wrote in notes to CNBC. Rising markets One other in style section Dietze is specializing in is rising markets, because of the potential from their quickly rising inhabitants numbers. Nations categorised as rising markets embrace China, India, South Korea, Taiwan and Brazil. 12 months-to-date, the MSCI Rising Markets Index is up 0.56%. “Eighty-eight p.c of rising market economies are anticipated to develop their economies sooner than the US,” Dietze mentioned, including that the markets are additionally “buying and selling at a pointy low cost.” Nonetheless, he’s involved about China’s deepening financial droop , for it could maintain again the appreciation of indexes since it’s a main part. Shares to observe Past his sectoral focus, Dietze named U.S. pharmaceutical Bristol-Myers Squibb , Australian mining participant BHP Group and confectionery producer Hershey as three under-the-radar firms he’s betting on proper now. — CNBC’s Jesse Pound contributed to this report.