Geopolitical Shock Revives Energy and Preferred Income Themes

The featured commentary argues that Iran strikes amplify volatility but do not yet alter the Fed’s expected path 

• U.S. equity futures point ~-1.1%, oil +8%, and gold higher; Treasury yields tick up despite risk aversion.

• Core PPI rose 0.8% m/m (3.6% y/y), reinforcing expectations for two 25bp Fed cuts in 2026 with 10-year yields near 4%.

• Preferred securities—particularly $1,000 par issues (4.2-year duration)—offer yield, QDI tax efficiency, and exposure to resilient financial issuers (see Figure 2, p.3).

Does energy-driven inflation risk reshape allocations—or reinforce income strategies? The full commentary elaborates.