Caterpillar (CAT)

URI vs. CAT They're both cyclicals. He owns only URI. CAT stock is a little ahead of itself at 25-30x this year's earnings. URI is trading at a lower level. URI will still do well if a US infrastructure bill will be passed. Yes, it's lumpy and volatile, so strategically limit your exposure to this in your portfolio. Diversify away from higher-beta, riskier stocks.

Classic stock for this kind of environment. Leadership in the recovery includes industrials and basic materials, which covers CAT. Would be one of the biggest winners from the infrastructure bill. The work in Texas alone is huge. He'd buy it right here. He also owns DE.

CAT vs. TIH A little expensive. If the US dollar continues to fall, commodity prices have started to rise, so that should increase demand. Trades at 25x, starting to break out. Nothing wrong with anybody buying it. His choice is Toromont, which has higher dividend growth and better price performance.

If there's a Blue Sweep on Nov. 3, the Dems will produce an infrastructure package and industrial names like this benefit. This, plus 3M, Otis and Emerson, will benefit from the end of the US-China trade. However, Caterpillar will thrive under either Biden or Trump.

A uber-cyclical stock into mining, roads, forestry, etc. The price of copper has broken out to the upside, which may be a signal for higher commodity prices and for this stock. He would consider buying here.