It's been an eventful week for markets following the Federal Reserve's 50 basis point rate cut last week and the Dow Jones and S&P 500 hitting record highs on Tuesday. As investors think about how to play the market, Peapack Wealth Management's David Dietze reveals where and what he's currently betting on. “There are a lot of fundamental drivers working well in this market,” Dietze, the U.S.-based asset manager’s managing principal and senior investment strategist, told CNBC’s “Street Signs Asia” on Wednesday. Previously, the S&P 500 Index and the Dow Jones Index rose 0.25% and 0.20% respectively on September 24, closing at a record high. . All three averages are on track for positive growth in September, despite lingering concerns about an economic slowdown following last week's rate cut. “It's very rare for Fed policy to change so close to an election last week. The last time we saw this was in 2008 when we were in the depths of the financial crisis, it makes sense,” the veteran investor said. He expects the Fed to cut interest rates by a further 25 to 50 basis points in November and December. Against this backdrop, Dietz said his investment strategy includes assessing the health of the company based on its upcoming third-quarter results. “I always view earnings as the most important reason to buy a stock, and we expect earnings to surge sharply by the fourth quarter. By 2025, we expect earnings to grow 14%.” Favorable valuations Small-cap stocks are an area Dietze is watching closely One, because they are trading at a “discount”. Interest in small-cap stocks picked up in July, and while the outlook is mixed, he likes the current “favorable valuations.” The Russell 2000 index, which reflects the performance of U.S. small-cap companies that generate most of their revenue domestically, is up 9.5% so far this year. “Technical staff noted that small caps outperformed on the timing of (Federal Reserve Chairman Jerome) Powell's rate cut announcement, with small caps up 3% on heavy trading volume,” Dietz wrote in a note to CNBC. Previously rare. Emerging Markets Another hot area Dietze is focusing on is emerging markets because of their potential for rapid population growth. Countries classified as emerging markets by MSCI so far this year. The market index rose 0.56%. “Eighty-eight percent of emerging market economies are expected to grow faster than the United States,” Dietz said, adding that the market was also trading at a “significant discount.” However, he is concerned about a further downturn in China's economy as it could hinder the appreciation of the index, of which it is a major component. Stocks to watch In addition to sectors to watch, Dietz named U.S. pharmaceutical company Bristol-Myers Squibb, Australian miner BHP Group and candy maker Hershey's as three low-profile companies he's currently betting on. —CNBC’s Jesse Pond contributed to this report.