The S&P 500 (^GSPC) has been dominated by the Magnificent Seven tech stocks as many investors look to these companies for greater market guidance. Wall Street strategists have changed their tone to a bullish tune as new investment opportunities are opening up despite economic woes.

TCW Head of Global Wealth Jennifer Grancio joins Yahoo Finance to give insight into some of these new opportunities that investors should consider.

"We're seeing a transformation around energy, which is sources of powers, but also efficiency," Grancio states. "So planes are getting more efficient. If somebody can manufacture a plane that's more efficient, they have huge pricing power and they have huge kind of opportunity to drive up the stock price.

Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.

Video Transcript

- Wealth growth stocks still have been dominating Wall Street gains this year thanks, in part, to artificial intelligence. Our next guest says there's opportunity in growth names outside of the tech sector. Joining us now, Jennifer Grancio, TCW Head of Global Wealth. Great to see you. Thanks so much for coming in.

And this is obviously a theme that we've talked a lot about this week, that the Mega Cap tech stocks have just been dominating. But your bag is sort of looking outside of that, at other things here. So I guess, first of all, tell us your methodology and why you want to look outside of that Mega Cap growth.

JENNIFER GRANCIO: Yeah, thank you. I would be happy to do that. And if you think about it, everybody is so invested, and everybody's portfolio is so invested in tech and growth at this point. We think that it's always hard to time the markets and you can't be in-- you can't be in cash vehicles forever.

And so when you look at the equity portfolio, we're seeing huge, huge transformations in the market. So we're seeing a transformation around energy, which is sources of powers, but also efficiency. So planes are getting more efficient. If somebody can manufacture a plane that's more efficient, they have huge pricing power and they have huge kind of opportunity to drive up the stock price.

And so we run a range of strategies that are looking at helping people make money outside of that core tech portfolio, particularly as we look at one transformation of how we use energy and power, and two, reshoring, and this huge boom we're having in manufacturing in the US.

- And commercial aerospace, that's one area. Explain that thesis to us.

JENNIFER GRANCIO: Yeah, absolutely. And so if we think about how much we've invested or haven't invested frankly, in the last decade and in certain areas, commercial aerospace is one of those areas. So two investment opportunities. One, the planes we have up in the air today need a huge amount of maintenance. I think we've had 3 million people traveling just on Sunday. Highest travel day ever was this past Sunday.

So air travel is coming back. The planes need to be serviced. So a huge opportunity in names like GE that are actually manufacturing and repairing. And then if we look forward, there's a demand from consumers for efficiency. So new planes, Airbus in new planes use 20% less fuel, which is a huge savings and a huge edge therefore, for companies that are buying the Airbus plane. So that's one of the themes that plays out in our portfolios.

- Whenever we talk Airbus, I got to ask about Boeing too. So implied then is the idea perhaps that Airbus is doing a better job at this than is Boeing?

JENNIFER GRANCIO: That's our thesis.

- OK. And just because that they are looking more to the future of having these more efficient planes.

JENNIFER GRANCIO: The future, and also how they run their business. So you know, Airbus is a business we think is very well run. We're active managers, so we run net Z is one tick, or SAP is the other. They're very concentrated portfolios. And so we've known these management teams for a long time. In some cases, like in the waste management space, we own a couple of names. In the case of aerospace, we think Airbus is the one to hold.

- And what could-- Jennifer, what could then Boeing be doing differently?

JENNIFER GRANCIO: I think it's a combination of how they run their business historically and how capable they are in terms of delivering in a reliable way from a forecasting perspective so that we can see that stock grow.