Laffer Tengler Investments CEO says market pullbacks may create buying opportunities across software, AI infrastructure and consumer discretionary stocks
Nancy Tengler believes investors should prepare for potential market volatility in the near term, but she also sees upcoming pullbacks as opportunities to position for continued earnings-driven growth across technology and consumer sectors.
Tengler noted that once earnings season fully concludes, markets may face a temporary lack of positive catalysts, causing investors to shift focus toward Federal Reserve policy, geopolitical developments and broader macroeconomic risks. While she expects the possibility of a correction, she emphasized that the earnings growth supporting the current market rally remains sustainable.
Despite growing concerns surrounding the health of the consumer, Tengler pushed back against bearish narratives. She stated that consumer spending remains stronger than many believe and revealed that The TJX Companies (TJX) remains a favored position within her portfolios. She added that her firm continues maintaining an overweight position in consumer discretionary stocks, expecting consumer activity to rebound strongly.
On the technology side, Tengler highlighted Quanta Services (PWR) and Advanced Micro Devices (AMD) as long-term holdings tied to the expanding AI infrastructure cycle. She also emphasized the importance of opportunistic investing, noting that her firm added to CrowdStrike (CRWD) during periods of weakness when sentiment toward software stocks deteriorated.
Tengler further argued that Wall Street continues overlooking several software companies poised to benefit significantly from artificial intelligence adoption. She specifically pointed to ServiceNow (NOW), Palantir Technologies (PLTR), CrowdStrike and Microsoft (MSFT) as major long-term beneficiaries of enterprise AI deployment.
According to Tengler, once investor attention shifts away from semiconductor-focused momentum trades, software leaders with strong AI integration could once again emerge as market favorites.
