Bloomberg Surveillance · Thursday, July 2, 2026
Margie Patel stated that corporate earnings are expected to remain strong, surprising on the upside, and that dividend stocks will continue to outperform fixed income. She believes companies are able to maintain profit margins and increase prices due to high inflation, and that the Fed's actions have limited impact.
“Definitely, because I've incorporate earnings are going to continue to be strong, They surprised on the upside from several quarters now even with relatively modest GDP growth. So I think stocks are going to at stocks, especially dividend stocks, will continue to outperform fixed income alternatives.”
“In fact, we've seen no sign whatsoever that with inflation being above the fence targets, the profit margins are squeezing. So I think that that's much more important our companies maintaining profit margins increasing prices, because that's what the high inflation is saying to me, that they have the ability to raise prices.”
“And I think the fit is as Warsh is doing is pretty much on the sidelines as far as thinking that a quarter point movement in rates will have some effect on the whole economy.”