Kevin Mahn, the President & CIO at Hennion & Walsh Asset Management, joins Remy Blaire to discuss how Wall Street seems to be tuning out the geopolitical noise as institutional investors return to equities. The S&P 500 saw a significant surge of 1.2% on Tuesday and has gained nearly 10% since March 27th, while the Nasdaq has advanced about 12%, achieving its longest winning streak since 2021.
Kevin emphasizes the importance of not trying to time the market and suggests that investors reassess their portfolios to align with their true risk tolerance. Diversification is key, and he recommends considering international stocks and bonds for income potential.
They also discuss the driving forces behind the current rally, particularly the ongoing investment in AI infrastructure, which remains robust despite geopolitical tensions. Kevin highlights opportunities in various sectors, including data center construction and power supply, as essential components of the AI ecosystem.
Additionally, they touch on the aerospace and defense sectors, which are gaining attention due to recent military conflicts and increased defense spending commitments from NATO countries. Kevin expresses optimism about the American consumer’s health, noting that while spending has remained strong, rising gas prices could pose challenges if the conflict in Iran persists.
As they look ahead to the Federal Reserve’s upcoming meetings and potential rate changes, Kevin shares his outlook, suggesting that the Fed may remain on pause for the rest of the year, with a possibility of one rate cut.
