Bloomberg Surveillance · Monday, July 27, 2026
Emily Rowland believes utility stocks remain an attractive inflation hedge, despite their strong performance this year. She notes their defensive qualities, income generation, and ability to pass on costs during inflationary periods, making them a valuable component of a diversified portfolio.
“Utilities are an inflation hedge. They've got income and they're more defensive. So we're still overweighting.”
“But we are facing this really remarkable environment where there's these two sort of mega forces that are set to collide in the back half of the year. On one hand, you have the bond market pricing in two FED rate hikes, one in September and one in December, so the idea there is that liquidity is going to get pulled out of the system.”