Nancy Prial sees hidden value beyond mega-cap tech in 2026

Summary

Nancy Prial, Co-CEO and Senior Portfolio Manager at Essex Investment Management, advises investors to stay diversified and patient as headline-driven volatility creates temporary dislocations. She says volatility can be used to add to stocks and sectors whose valuations have become more attractive. Prial is bullish on defense, particularly 'smart defense' areas such as radar, drones, and UAVs, and favors companies that remain below the radar.

• Nancy Prial emphasizes diversification and long time horizons amid headline risk.
• She views recent volatility as temporary, similar to last year's tariff-related disruption.
• She sees opportunities to layer into stocks and sectors with improving valuations.
• Prial has been investing in defense for a couple of years.
• Her defense focus is on 'smart defense': radar, drones, UAVs, and technology-driven companies.
• She favors defense companies that are below the radar screen.