With tariffs set to kick in August 1, Nancy Tengler, CIO, Laffer Tengler Investments reveals the stocks to keep an eye on.
Transcript:
CAROLINE WOODS: Let’s talk about how investors should be deploying some of their capital right now. What changes do you think they should be making to their portfolio, especially ahead of the tariff deadlines that are approaching amidst some of this geopolitical turmoil. And given so much uncertainty that still exists out there?
NANCY TENGLER: Yeah well, so there’s always a tremendous amount of uncertainty. Caroline that’s the whole wall of worry that we climb. But this, this could, you know, you could. Geopolitical shock is hard to quantify. So if this continues or we get involved. And it goes on for a long period of time, that’s a different story. I’m going to say for point of our discussion that let’s assume that it’s pretty short lived. Then we get back to the business of tariffs and other worries. What we I’ll just tell you what we have done. We we were long and continue to be long the tech trade. I don’t think if you’re in a slowing economic environment you want to go defensive. You want to own the reliable earnings growth. And so that’s technology. It’s selective consumer discretionary. And in our case, we’re also overweight industrials. But what we began doing around the tariff tantrum was, we started to inoculate our portfolio again by adding some names that are tariff proof. So by that I mean think of names like Sherwin Williams that make and sell paint locally, or TJ Maxx, which, you know, buys inventories that are already in the US from retailers, or Accenture, which had gotten clobbered on a slowing economic environment, but really is now a long cycle portion of companies IT budgets. That’s an opportunity for investors who are not in the name to get in the name. And then we added some transmission companies, natural gas transmission. So ECC and Williams and I think that’s added to the fact that we’re overweight the technology names. We also added a defensive name in technology, which is Cisco, in the last few months, and we added to names like Microsoft, Palantir, and CrowdStrike. So you want to be buy. We really want to have a barbell approach in your portfolio. You don’t want to give up on growth. You don’t want to go all in on the defensive trade because those stocks are actually trading. Consumer staples, for example, are trading at multiples that marvel and rival some of the technology companies with much slower top line and earnings growth.
Subscribe |
Earn. Live. Invest. |
TheStreet Pro |
#tariff #money #investing
source
