The Latitude Horizon Fund owns Google and Visa, but Lait suggested that investors can still find "best in class quality cyclical businesses" which he claimed the market is broadly ignoring. Cyclical businesses are those whose success is largely tied to economic cycles.
"JPMorgan is a highly cyclical business, but I believe a best in class quality business," he said, adding that semiconductor manufacturer Texas Instruments and industrial gases company Air Liquide also fit this profile. "These businesses are very high quality even if they are tied to economic cycles, and they are on sale at the moment, so you can buy these market leaders and merge them in a portfolio effect with some of the technology and health care market leaders that everybody else owns," he explained.
"You end up with an aggregate P/E that is substantially lower than the market, but with similar sort of growth rates and a great balance to the portfolio if interest rates do move or if you see a value-cyclical rotation or anything like that, which eases your pressure in terms of taking single bets on the market."
TI is falling behind the modern tech while the finance sector is limping into the trading floor because of its dreaming big greed or dreaning nothing. $3trillion go directly to people and mom's and pop's shops. The big dreaming bankers fight for crums on the floor.
Great, i’ll be selling then.