A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."
JPMorgan (JPM), Texas Instruments (TXN), and Air Liquide (AI) stocks are highly cyclical businesses and best in class quality according to Latitude Investment Management CEO Freddie Lait.
As businesses globally realign and adjust themselves accordingly due to the ingoing coronavirus pandemic, investors are constantly seeking opportunities to realize profits despite the challenges. According to Latitude Investment Management CEO Feddie Lait JPMorgan Chase & Co (NYSE: JPM), Texas Instruments Inc (NASDAQ: TXN), and Air Liquide SA (EPA: AI) stocks are highly cyclical businesses, and he believes they are the best in class quality businesses. Lait mentioned in a statement:
“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 technological and health care market leaders that everybody else owns”.
He also explained:
“You end up with an aggregate P/E that is substantially lower than the market, but with similar sort of growth rate 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 marker”.
Essentially, according to Lait investors should seek to balance their portfolios with different stocks, which is an investment style that has worked significantly well for him in the past decade and also the last few months. According to the investment company that he leads, the corporate earnings are to fall around 35% for 2020 and edge up in 2021 but remain below 2019 levels. This is mostly due to the unpredictable nature of the COVID-19 and the level of market disruption likely to incur if not tamed soon enough.
Into Details of JPM, TXN and AI Stocks
To start with, the American multinational investment bank and financial services holding company, JPMorgan Chase stocks have been significantly hit by the coronavirus outbreak. Presumably deluding from the figures, whereby they dropped 29.75% YTD, added 6.76% in the past three months, and lost 1.56% in the last five days. The shares closed yesterday with a 1.22% profit to trade at $97.93, however they are down 0.13% in the after-hours.
On the other hand, the Texas Instrument Inc shares have been steady despite the increased market volatility. Year-to-date they have dropped 1.30% but added 27.69% in the past three months.
As for the Air Liquide stocks, they have shown their ability to withstand the market bear pressure in the past six months. They have added 2.26% YTD, and increased by 18.61% in the past three months.