Bloomberg Surveillance · Monday, July 27, 2026
Emily Rowland identifies mid-cap stocks and industrials as resilient sectors, particularly in inflationary environments. She explains that companies with fixed operating costs and significant investments in property can pass on rising prices to consumers, making them beneficiaries of moderate inflation.
“So midcap socks and industrials. First of all, midcaps do have a large relative overweight to the austrial sector, which we've been bullish on again given them one big beautiful bill, given the buildout of data centers in the United States, on shoring, et cetera.”
“And when we look at midcaps in inflationary environments, they actually tend to like it. When you think about that industrial as overweight. These are companies that have fixed operating costs. They have large investments in property, plant and equipment, and when inflation rises, they can actually pass those prices onto the end consumer, which is why industrials tend to do well in inflation around two to four percent.”