Bond yields (^TNX, ^TYX, ^FVX) are retreating as investors anticipate the Federal Reserve's next rate-setting meeting. Laffer Tengler Investments CEO and CIO Nancy Tengler joins Market Domination Overtime to share her market (^DJI, ^IXIC, ^GSPC) outlook.

Tengler expresses little surprise at the pullback in yields, stating, "The market has gotten way ahead of the Fed," noting that investors have become overly focused on multiple 50 basis point cuts. However, she believes the initial cut should have been more modest, suggesting 25 basis points instead of 50. She argues, "The economy is still sound and the job market is not falling apart." Given this, Tengler plans to extend duration and "hang in there for a bit" regarding yields.

Looking ahead, Tengler anticipates potential inflationary pressures, telling Yahoo Finance, "We do think we're gonna get a tick up [in inflation] and the question will be how much and how sustainable it is. But it is definitely on our radar."

Addressing the ongoing Iran-Israel conflict and its impact on oil (CL=F) (BZ=F) markets, Tengler observes that markets often have a "perverse reaction" to geopolitical tensions. She notes that historically, markets tend to rally during Middle Eastern conflicts, stating, "Generally speaking, it has not hurt stocks." Tengler characterizes the current situation as a bullish period for oil.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Angel Smith