When markets get noisy, the best advice is often the simplest: follow the money, not the panic. That's the message from Kevin Mahn, President and Chief Investment Officer at Hennion & Walsh Asset Management, who told the Schwab Network this week that investors need to look past tariff headlines and focus on the investment themes that actually matter.
Here's a reality check that should make headline-chasers nervous. In 2025, markets initially tumbled nearly 15% by April as tariff fears dominated the conversation. But investors who stayed the course and ignored the noise? They enjoyed a 39% rebound by year-end. That's the kind of lesson that sticks.
Where the Real Money Is Going
Mahn isn't recommending that investors hide out in gold or cash while waiting for volatility to pass. Instead, he's urging them to chase long-term growth, particularly in the AI infrastructure boom that's shaping up to be one of the decade's biggest investment opportunities. We're talking trillions of dollars in infrastructure investments expected by 2030, and the companies providing the picks and shovels for this buildout stand to gain significantly.
Take Comfort Systems USA Inc. (FIX), which just got added to the S&P 500. The company specializes in data center cooling, which becomes increasingly critical as AI chips generate more heat than a server farm in Phoenix. Mahn also pointed to Duke Energy Corp. (DUK) as a utilities play that offers both growth exposure and stability, trading at 17 times forward earnings with a solid 3.7% dividend yield. When data centers need power, they need a lot of it.
Beyond AI: Defense and Biotech Opportunities
The investment thesis doesn't stop at AI infrastructure. Mahn highlighted aerospace and defense as another compelling sector, driven by rising global military budgets. He specifically named L3 Harris Technology Inc. (LHX) as a defense stock worth watching.
On the biotech side, small-cap companies are positioned to benefit from patent cliffs and merger activity among large pharmaceutical firms looking to replenish their pipelines. Mahn called out Indivior PLC (INDV) and Day One Biopharmaceuticals Inc. (DAWN) as examples of smaller biotech names that could see significant upside.
The overarching strategy for 2026, according to Mahn, is to "follow the money" while staying aligned with your personal risk tolerance. Even with ongoing volatility, the current environment may offer attractive entry points for investors willing to look beyond the daily headlines.
Navigating Today's Volatility
Mahn's perspective comes as markets face renewed pressure from President Donald Trump's tariff threats. The S&P 500 and Nasdaq 100 both slid around 2% recently, marking their worst sessions in more than three months. It's the kind of market action that makes investors nervous and sends financial media into overdrive.
But Mahn isn't alone in seeing opportunity amid the chaos. Tom Lee of Fundstrat Global Advisors has also predicted significant market volatility in 2026, largely due to Federal Reserve rate policies. Despite the near-term turbulence, Lee remains optimistic about several catalysts, including the anniversary of tariff implementation, potential Fed rate cuts, and a possible rebound in the ISM manufacturing index.
The takeaway? Markets will continue to react to tariff headlines and policy announcements. But for investors focused on long-term wealth creation, the real opportunity lies in identifying where capital is actually flowing and positioning accordingly. Sometimes the best investment strategy is simply tuning out the noise and following the money.
