Defensive Stocks: A Potential Antidote To Inflation Shocks
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AllianceBernstein (AB)4.99K FollowersFollow5ShareSavePlay(7min)SummaryEquity markets have come under pressure amid growing concerns about the conflict in Iran and its effects on energy prices and inflation.As of April 21, Brent crude oil futures were trading at just under $100 per barrel - up more than 60% on the year.Sustained increases in energy costs could push inflation higher, complicating the outlook for interest rates at a time when markets were anticipating monetary relief.While the trajectory and duration of a potential inflation spike remain to be seen, the oil shock is going to be felt by consumers and businesses alike, and it appears inflation isn’t going away anytime soon. Liubomyr Vorona/iStock via Getty Images By Kent Hargis, PhD & Peter Chocian The Middle East conflict has sparked fears of an inflation shock. For investors, defensive stocks could provide some relief. Equity markets have come under pressure amid growingThis article was written byAllianceBernstein (AB)4.99K FollowersFollowAB is a research-driven investment firm that combines investment insight and innovative thinking to deliver results for our clients. At AB we believe that research excellence is the key to better outcomes and as a result we have built a global firm with exceptional research capabilities. We offer a broad array of investment services that span geographies and asset classes to meet the needs of private clients, mutual fund investors and institutional clients around the world.