The Federal Reserve raised rates by 50 basis points on Wednesday, marking the first rate increase of at least half a percentage point in more than 20 years. Stocks jumped following the announcement, but retreated significantly on Thursday.
Laffer Tengler Investments’ Nancy Tengler seeing an opportunity in the middle of a sell-off.
“I think it’s going to fix itself,” Tengler said Thursday on CNBC’s “The Exchange”.
Whatever happens to the Fed, he sees opportunity in a few names that reported strong earnings in the first quarter.
“We’re still seeing growth in revenue levels. I’m amazed at how good the earnings have been this last quarter,” Tengler stressed.
See also: If You Invested $ 100 In SPY, Apple Or Amazon When The Fed Last Raised The Rate By 0.5%, Here’s How Much You’ll Make Now
Top Tengler Stocks: He wants Microsoft Corp MSFT at ServiceNow Inc NOW in the space of technology.
“Both are part of the inflation solution because of the productivity improvements they make by using their products,” Tengler said.
Both companies reported strong quarterly results and provided guidance for continued strength in their businesses, he added.
He wants to too Steel Dynamics Inc. STLDwhich had a “fantastic quarter” and raised its dividend by 20%, he said.
Among the other top picks from CEO Laffer Tengler Public Storage PSA at Coca-Cola Co KO.
“There’s a lot of good news at the bottom of the market … it’s the more speculative names that have had a hard time this quarter,” Tengler said.
SPY Price Action: Ang SPDR S&P 500 SPY dropped 3.57% to $ 413.75 at press time, according to data from Benzinga Pro.
Photo: courtesy of Microsoft.