How Utilities and Industrials Can Protect and Preserve a Diversified Portfolio

June 25, 2025

Volatility in the stock market has left many investors wondering where to find steady ground. If you’re feeling uncertain about your portfolio, you’re not alone. Markets swing on everything from tariffs to headlines about tech giants, and it can be easy to get caught up in the daily noise. But there’s a different way to approach these shifts—by looking beyond what’s grabbing attention right now.

If you’re aiming to build long-term financial security, some sectors that don’t usually make headlines might deserve a closer look. Utilities and industrials are two areas that have often been overlooked, especially as attention piles onto technology stocks. You might find that these sectors can help balance your portfolio, provide steady growth potential, and offer a path that feels less stressful, even when markets are unsettled.

Market Volatility and the Case for Long-Term Focus

If you’ve watched the markets lately, you’ve seen how quickly things can change. News about tariffs, economic policy, and global events can create a lot of noise, making it hard to figure out where you stand. Trying to react to every headline or trade rumor can feel like chasing your own shadow—one day you’re up, the next you’re down.

Michael Landsberg, Chief Investment Officer with Landsberg Bennett Private Wealth Management, put it simply during his appearance on Reuters:
 “I think the market’s attractive here for investors that are a little bit longer term. Right now what’s happened is, from a trading standpoint, there’s a lot of volatility, a lot of whipsawing going around. And I think if you’ve got a longer-term focus, there’s some opportunities here.”

You might find that this back-and-forth doesn’t work in your favor, especially if you’re aiming for steady growth. Short-term trading often means making decisions based on emotion or hype, not on real company fundamentals. That’s why a long-term perspective can make a difference. When you look beyond the day-to-day swings, you can spot opportunities in companies and sectors that continue to deliver value, even when the headlines are focused elsewhere.

As Michael pointed out, “If you’re going to try to trade tariff rumors and tariff noise, I think that’s a tough environment to be in.” Choosing to focus on the long haul allows you to tune out the constant buzz and make decisions based on what really matters—steady earnings, strong management, and the potential for future growth. Utilities and industrials often fit this mold, offering a steadier hand during periods of uncertainty.

The Problem with Concentration in Top Tech Stocks

Over the past few years, many investors have focused on the same handful of technology stocks, sometimes called the “Mag 7.” When those names surged in 2023 and 2024, it was tempting to keep adding more of them to your portfolio. But as the markets have shown recently, even the most popular stocks can lose steam.

Michael Landsberg addressed this during his interview with Reuters: “I also think that most people are overweight, you know, the Mag 7 and some of those names where they need to diversify more. And I think you saw that basically in the first four or five months of this year—those stocks, for the most part, underperformed, and a lot of people were very upset about their performance simply because they had done so well in 2023 and 2024.”

When your investments are tied up in just a few names or a single sector, you’re left more exposed to sudden drops or periods when those stocks fall out of favor. That’s why broadening your approach can help you smooth out the ride and avoid disappointment when market trends shift. You don’t have to abandon growth stocks, but expanding your universe beyond the most talked-about companies can help you build a more balanced, resilient portfolio. That’s where sectors like utilities and industrials come in—offering different sources of value and helping you avoid putting all your eggs in one basket.

How Utilities and Industrials Can Help Protect and Preserve Your Portfolio

Adding utilities and industrials to your investment mix brings more than just growth potential—it adds balance and resilience. These sectors help smooth out the ride when markets get choppy and can provide opportunities that might not be obvious at first glance. As Michael Landsberg puts it, “You’ve got to expand your universe outside those seven or eight names. Add more diversification. And there’s been some value in some of those places that are not just those names.” By looking beyond the popular stocks and bringing in sectors with steady fundamentals, you’re giving yourself a wider set of tools to work with—both for steady performance and for new opportunities.

Here’s how they make a difference:

1. Consistent Revenue Streams: Utilities provide essential services like electricity and water, which means steady demand and reliable income for these companies. Industrial firms often hold long-term contracts or serve industries that are fundamental to economic growth. Both sectors help add a foundation of consistency to your investments, even when other parts of the market are swinging up and down.
2. Reduced Volatility: Because utilities and many industrials aren’t as closely tied to the latest trends or hype, their performance tends to be less erratic than fast-moving sectors. Utilities, in particular, are often considered more stable during market downturns, helping to offset risk and smooth out the ride for your overall portfolio.
3. Potential for Regular Dividends: Many companies in these sectors share profits through regular dividend payments. This creates an income stream you can count on, which is especially valuable if you’re looking to generate cash flow in retirement or during uncertain times.
4. Exposure to Growth Trends: While these sectors are often seen as stable, many utilities and industrials are investing in new technologies. From renewable energy and infrastructure upgrades to automation and AI support, these companies are finding ways to capture growth without losing their base of reliability.
5. Improved Diversification: Relying on just one sector can leave your portfolio exposed to sudden swings. By adding utilities and industrials, you’re spreading your risk across different parts of the economy. This diversification helps you weather downturns in any single area and can improve your long-term results.
6. Resilience Across Market Cycles: Both sectors have a history of enduring through various economic climates. Utilities, due to the essential nature of their services, and industrials, through their adaptability and role in economic development, have shown they can hold up during tough times and benefit from economic recovery.

The Opportunity: Utilities and Industrials

When the conversation turns to investing, utilities and industrials aren’t always the first sectors people mention. Yet these areas of the market may be where you find opportunities that others are missing, especially during times when tech stocks are struggling or the broader market feels unsettled.

Michael Landsberg touched on this during his Reuters appearance, saying, “There’s quite a number of stocks that aren’t at all-time highs that are still growing their earnings and that have maybe been unfairly punished during some of this kind of tech selloff.” He pointed out that while these sectors may not be grabbing the spotlight, they often have solid fundamentals and steady performance.

Utilities and industrials don’t get the same attention as the latest technology trends, but they continue to play an important role in the economy. These companies often deliver reliable earnings and, in many cases, pay dividends. For investors who want more balance, these sectors can offer a way to add stability and growth without being tied only to the ups and downs of tech stocks.

If you’re looking for stocks that are positioned to keep moving forward, even when the rest of the market is choppy, utilities and industrials may be worth a closer look. These sectors have the potential to help you weather uncertainty while adding new sources of value to your portfolio.

Utilities: Defensive Strength and New Growth

If you’re searching for sectors that can offer more predictability in your portfolio, utilities are often a go-to choice. These companies provide essential services like electricity, water, and gas—things people rely on no matter what’s happening in the economy. That steady demand is part of why utilities have a reputation for being reliable and less sensitive to market swings.

During the Reuters interview, Michael Landsberg highlighted the value in this sector: “Utilities have been an area that we focused on. We think those are continuing to do well. There’s some utility names that also play in the AI space, so you can up your game if you want higher beta, but we think utilities are attractive.”

You’re not just limited to the traditional image of a utility company. Some utilities are finding new ways to grow, tapping into trends like renewable energy or even supporting data centers that drive artificial intelligence. This means you can find opportunities for steady income and growth in the same place, depending on your goals and appetite for risk.

Why are utilities a good fit for long-term investors?

Consistent Demand: Utilities provide services that people need no matter what’s happening in the market or the economy. This helps create steady revenue and, often, regular dividend payments.

Stability During Volatility: Because demand for energy, water, and similar services doesn’t swing much, utility companies tend to be less affected by economic ups and downs.

Potential for Growth: Many utilities are modernizing, investing in cleaner energy, and even supporting the growth of technology infrastructure like data centers. This adds a layer of long-term growth potential beyond just reliability.

Income Focus: Utilities are known for distributing a portion of their earnings as dividends, which can add a source of income to your portfolio.

If you want a sector that offers stability with the possibility of a little extra upside, utilities can fit into your diversified portfolio. Whether you’re after reliable dividends or looking for companies that are adapting to new technology, utilities can help provide a smoother ride through turbulent markets.

Industrials: Versatility and Exposure to Growth Trends

Industrials make up a broad and dynamic part of the market, covering everything from transportation and construction to manufacturing and logistics. You’re likely familiar with companies that build airplanes, operate railroads, manufacture equipment, or provide key services that keep supply chains running. Some industrial firms are even involved in producing components for renewable energy projects or supporting the infrastructure needed for emerging technologies.

Michael Landsberg explained why this sector deserves attention: “Industrials have been a favorite of ours for a long time because you can run the gamut of industrials, where you’re really looking at non-AI type industrials, or you can actually put some stuff in there that’s got some tech-related industrial exposure.”

Here’s why industrials may be a good fit if you’re thinking about the long term

Economic Backbone: Industrials play a foundational role in economic growth. As the economy expands or new projects begin, demand for industrial products and services often grows too.

Diverse Opportunities: This sector includes both well-established businesses and companies adapting to trends like automation, green energy, and infrastructure upgrades.

Potential for Resilience: Industrials have shown that they can adjust to shifts in demand and technology, helping them remain relevant through various market cycles.

Exposure to Innovation: While not all industrials are tied to technology, some are closely connected to new developments in automation, robotics, or sustainable infrastructure.

By adding industrials to your portfolio, you gain access to a sector that can help you keep pace with both economic changes and longer-term growth opportunities. If you’re aiming for diversification, industrials offer both stability and a chance to participate in progress across a wide range of industries.

Practical Steps for Investors

If you’re considering making changes to your portfolio, you don’t have to overhaul everything at once. The goal is to take practical steps that fit your own risk tolerance and long-term objectives. Here’s how you can approach adding more exposure to utilities and industrials:

• Assess Your Current Portfolio: Start by looking at how much of your portfolio is tied up in a single sector or just a few stocks. If you’re heavily concentrated in technology or another area, it might be time to add more balance.
• Consider Utilities and Industrials: These sectors can offer steadier earnings and, in many cases, regular dividends or income. They can act as a counterweight when growth stocks are out of favor.
• Think About Your Time Horizon: Utilities and industrials tend to reward patience. If you’re investing for long-term goals like retirement, these sectors can provide consistency through different market cycles.
• Match Your Risk Tolerance: If you want a smoother ride, utilities can offer more stability. If you’re open to a bit more movement and potential for growth, industrials provide that flexibility.
• Get Professional Guidance: If you’re unsure where to start or how to adjust your portfolio, reaching out to a financial adviser can help you align your investments with your personal goals.

These steps can help you build a portfolio that’s less dependent on short-term market swings and better equipped to handle the ups and downs. Utilities and industrials are just two examples of sectors that can add value, stability, and long-term growth to your investment strategy.

Conclusion

When markets are unpredictable and headlines focus on the same handful of stocks, it’s easy to feel uncertain about where your investments stand. But you don’t have to follow every twist and turn. By taking a step back and looking at your entire portfolio, you can find opportunities in areas that aren’t always in the spotlight.

Utilities and industrials might not get all the attention, but they play a key role in helping you build a diversified portfolio. These sectors can bring balance, steady earnings, and the potential for growth, especially when other parts of the market are on shaky ground. By considering these options, you’re giving yourself more ways to pursue your long-term goals and reduce the stress of short-term market swings.

If you’re ready to strengthen your portfolio for the future, now is the time to look beyond the obvious and see what utilities and industrials can offer. Steady demand, resilience, and exposure to new trends can help you stay on track no matter what the market brings.