Forget inflation. According to UBS, disinflation could be his big surprise in 2023. “Inflation has been higher than expected and lasted longer, but has finally picked up sharply. I think it will be faster,” he said. According to the memo, investors can prepare their portfolios for the growing forces of impending disinflation. This includes easing supply he chains, easing core commodity prices and even weakness in the labor market. On Wednesday, investors soaked up the latest figures in the Producer Price Index, which fell 0.5% in December. Economists polled by Dow Jones had expected a 0.1% decline for the month. This is the latest indication in economic data that inflation is easing from highs and has raised hopes that the Federal Reserve will soon scale back its rate hike campaign. , selected global stocks most positively impacted by disinflation in the US, Europe, UK, Asia Pacific and Latin America. According to the memo, these names were chosen for their return sensitivity to changes in inflation, price performance during periods of declining inflation, and earnings sensitivity to changes in the inflation index. Here are the 10 stocks UBS looked at: According to the note, Netflix is positively correlated with disinflation. Jefferies analyst Andrew Uerkwitz recently upgraded the streaming giant from hold to buy. Another company to benefit from a temporary slowdown in price appreciation is Dollar General, which UBS says is positively correlated with disinflation. Logitech, a maker of computer peripherals, will also benefit from the disinflation. Indeed, Deutsche Bank said this month that tough economic conditions could affect computer and video spending, and the stock was cut from buy to hold. Other stocks included in this list are Abbott Laboratories and his Clorox. — CNBC’s Michael Bloom contributed to this report.
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