Laffer Tengler Investments CEO and chief investment officer Nancy Tengler weighed in on fresh market swings and laid out how she is thinking about stock selection in a new year interview on the program Making Money. The discussion comes as investors enter January with uneven trading, unsure of the path for interest rates, corporate earnings, and global risk.
The appearance offered a timely read on positioning. Tengler’s focus on the forces moving stocks, and what to own when the tape turns choppy, speaks to a broad audience of savers trying to stay invested without taking on too much risk.
Why volatility is back in focus
Market ups and downs are not unusual early in the year. Investors are resetting views after the fourth quarter, taxes and fund flows can distort prices, and companies soon reveal fresh guidance. The debate over inflation and central bank policy still hangs over rate-sensitive areas, while energy and geopolitics add another layer of uncertainty.
Historically, stocks often endure sharp pullbacks within a calendar year even when they finish higher. That pattern can rattle new investors, but long-term returns have tended to reward those who stay disciplined. Tengler’s appearance met that moment, stressing the difference between headlines and fundamentals.
About Nancy Tengler and her approach
Tengler leads Laffer Tengler Investments as both CEO and CIO, a dual role that combines strategy with day-to-day portfolio decisions. She is a frequent market commentator known for plain‑spoken analysis and attention to earnings quality. Her lens focuses on cash flow, valuation, and management execution rather than short‑term trading.
While she discussed favored names for the year, the broader takeaway was about process. The emphasis was on how to evaluate businesses when prices swing, and how to put small amounts of cash to work on weakness.
What investors listened for: quality, cash flow, and dividends
Periods of turbulence tend to highlight a few investing themes that have held up across cycles. These ideas framed the conversation and offer a checklist for readers sorting their own portfolios.
- Quality balance sheets: Companies with low debt and steady free cash flow can fund growth and defend margins when credit tightens.
- Earnings resilience: Firms with recurring revenue or pricing power can better handle cost pressures and demand shifts.
- Reasonable valuations: Paying a fair price reduces the risk of permanent loss if sentiment cools.
- Dividends and buybacks: Reliable cash returns can cushion returns while waiting for growth to reaccelerate.
- Secular growth drivers: Durable trends in productivity, health, and infrastructure can outlast a soft patch.
Sector signals and stock-picking in a choppy tape
Tengler’s stock picks were geared to these themes. Without chasing the hottest trades, the focus leaned on businesses that can compound through different rate settings and demand cycles. That often points to cash‑rich technology platforms, select healthcare names tied to aging demographics, industrials with long backlogs, and dividend leaders with disciplined capital allocation.
The message for retail investors was practical. Use watchlists. Set price targets. Add incrementally rather than in one shot. Volatility can be a tool, not only a threat, if buyers are patient and selective.
What the swings mean for households
For many savers, market noise collides with real goals like retirement and tuition. Tengler’s remarks suggested simple guardrails: align risk with time horizon, diversify across sectors and asset classes, and avoid reacting to every headline. Rebalancing after rallies or sell‑offs helps keep a plan on track.
Professional managers often hold some cash to act quickly when prices drop. Individuals can adopt a similar habit through scheduled contributions, ensuring they buy more shares when markets are down and fewer when they are up.
Outlook: earnings, rates, and discipline
The next catalysts are clear. Corporate results will test profit margins and guidance. Any change in central bank language can sway rate‑sensitive sectors. Cross‑currents from energy and global politics may spark more sudden moves.
Even so, the long game remains the same. Strong companies that defend cash flow, invest wisely, and return capital to shareholders tend to win over time. Investors who prepare for swings rather than fear them can use down days to upgrade portfolios.
As Tengler’s conversation suggested, patience and process carry more weight than prediction. The near term may stay bumpy, but a steady plan—anchored by quality and price—gives investors a path through the noise.
