BOSTON ( TheStreet) -- Americans have pulled almost $100 billion from equity mutual funds this year and put money in bonds and cash accounts to escape one of the most frightening years for investing.Some fund managers, meanwhile, are shadowing their benchmark indices, hoping to hold on to their jobs amid record volatility in the stock market. And it seems like every talking head is pushing large-cap dividend shares for safety. Not Sam Dedio.
Las Vegas Sands ( LVS) Company Profile: Las Vegas Sands is a developer of casino and entertainment resorts. The company has properties on the Las Vegas Strip as well as Macau. Share Price: $43.12 (Dec. 8) 2011 Return: minus 6.2% Market Cap: $31.9 billion Dedio's Take: Because of Las Vegas Sands' exposure to China through its gaming operations in Macau, Dedio says this stock pick is a demographics play. He points out that the company's non-U.S. revenue outpaces the revenue generated from the Vegas properties. When you look at their real-estate exposure -- where they have properties and where their gaming revenue is coming from -- there is an emergence of a middle class in China," Dedio says. "I really do believe that a population greater than the population of the entire U.S. will become the middle class in China over the next six or eight years."
Goldman Sachs ( GS) Company Profile: Goldman Sachs is among the world's largest investment banking and securities firms. Share Price: $100.03 (Dec. 8) 2011 Return: minus 40.5% Market Cap: $49.3 billion Dedio's Take: Bank stocks have been a horrendous bet this year for investors. Despite the slide in Goldman Sachs shares this year, Dedio sees plenty of opportunity. "It's among the best-run banks out there," Dedio says. "They're going to capitalize on a lot of the turmoil. With the management pressures that are ongoing at their competitors, I think they're the best-positioned bank to take advantage of that." Dedio says his return expectations for banks overall are lower because the capital requirements are higher. He says that will slow the return on equity for many of these banks. However, he argues that most investors are expecting a doomsday scenario and that the situation won't be as dire. For that reason, Dedio is also a holder of Wells Fargo, which he calls "a very well-run bank compared to its peer group." Dedio argues that Wells Fargo has moved fast and hard at its capital levels, consolidation and integration. "In this environment where short gains are the only path to growth, they're best positioned," he says.