You can stream and subscribe to Trader Talk on popular platforms like Apple Podcasts, Spotify, and others. The uncertainty surrounding tariffs and a possible economic downturn is making it challenging for investors to plan for the long term. Nonetheless, Wall Street expert Kenny Polcari suggests that the cybersecurity sector may have the resilience to navigate through this turbulent period.

Polcari highlighted the significance of cybersecurity in the current focus on AI technology. He pointed out that cybersecurity is less affected by tariffs compared to other industries. Companies such as CrowdStrike, Palo Alto Networks, Fortinet, Zscaler, and CyberArk are considered well-positioned to thrive in the current market volatility, despite the overall decline in the stock market this year.

The growth of AI heavily relies on robust security measures, as the increasing use of AI applications generates vast amounts of sensitive data, leading to heightened cybersecurity risks. Polcari emphasized that cybersecurity remains essential in the face of global uncertainties like trade wars.

While tariffs impact companies dealing with physical goods and energy more significantly, software and data sectors, including cybersecurity, remain relatively unaffected. Cybersecurity companies, mainly based in the US, tend to benefit from market uncertainties, unlike other industries susceptible to tariffs.

In the evolving landscape of AI integration, industries like banking, healthcare, and cloud services are expanding their AI usage, consequently increasing their cybersecurity needs. Despite cybersecurity also facing risks in a recession, Polcari noted that this sector is quietly thriving amidst the current economic challenges.