Kevin Mahn, President and Chief Investment Officer at Hennion & Walsh Asset Management, highlighted the potential impact of the recent tariff noise on the market and advised investors to look beyond the headlines and focus on underlying investment themes.
The expert, in an interview with the Schwab Network on Tuesday, stated that in 2025, markets initially fell nearly 15% by April due to tariff fears, but those who stayed invested experienced a 39% rebound by year-end, underscoring the risk of reacting to headlines instead of long-term trends.
Spotting Opportunities Amid Market Volatility
Mahn advised investors to prioritize long-term growth over safe-haven assets like gold or cash, highlighting the AI boom as a major opportunity, with trillions expected in infrastructure investments by 2030 and potential gains for companies supporting this growth, such as data center cooling and power providers.
Mahn highlighted Comfort Systems USA Inc.(NYSE:FIX), recently added to the S&P 500, as one example. He also named utilities stock, Duke Energy Corp.(NYSE:DUK), which also provides stability, trading at 17X forward earnings with a 3.7% dividend yield.
According to the analyst, other promising sectors include aerospace and defense, driven by rising global military budgets, and small-cap biotech, positioned to benefit from patent cliffs and M&A activity among large pharmaceutical firms. He named L3 Harris Technology Inc.(NYSE:LHX) in defense stocks and Indivior PLC (NASDAQ:INDV) and Day One Biopharmaceuticals Inc.(NASDAQ:DAWN) among biotech stocks.
Mahn said, in 2026, investors who "follow the money" and align with their risk tolerance may uncover attractive entry points despite ongoing volatility.
Investing Through Volatile Markets
Mahn’s advice comes at a time when the market is experiencing significant turbulence due to the renewed tariff threats by President Donald Trump. The market has seen a significant downturn, with the S&P 500 and the Nasdaq 100 both sliding around 2%, marking their worst sessions in more than three months.
Despite the current market conditions, Mahn’s advice aligns with the predictions made by other market experts. Tom Lee of Fundstrat Global Advisors has also forecasted significant market volatility in 2026, attributing it to the Federal Reserve’s rate policies. However, he has expressed optimism about several factors, including the anniversary of tariffs, the Fed’s rate cuts, and a possible rebound in the ISM index.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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