Forget inflation. Disinflation may very well be the large surprise of 2023, based on UBS. “Having peaked higher and continued for longer than most expected, inflation is finally rolling over fast. From here, we expect the pace of disinflation may also be faster than markets expect,” UBS’ strategist Nicolas Le Roux wrote in a Wednesday note. Investors can prepare their portfolios for growing disinflationary forces on the horizon, based on the note. These include an easing in supply chains, in core goods prices, and even some weakness within the labor market. On Wednesday, investors absorbed the newest reading on the producer price index, which showed a decline of 0.5% in December . Economists surveyed by Dow Jones were forecasting a 0.1% decline for the month. It’s the newest signal within the economic data that inflation is easing from its highs, raising hopes that the Federal Reserve will dial back its rate-hiking campaign soon. For such an environment, UBS chosen global equities that will be most positively affected by disinflation across the U.S., Europe, the UK, Asia-Pacific and Latin America. In response to the note, these names were chosen for his or her return sensitivity to changes in inflation, price performance during times of declining inflation, and revenue sensitivity to changes in inflation indexes. Listed here are the ten stocks UBS noted. Netflix is positively correlated to disinflation, based on the note. Jefferies’ analyst Andrew Uerkwitz recently upgraded the streaming giant to purchase from hold , saying in a recent note that Netflix will offer investors a refuge in a downturn because it rolls out changes to password sharing. One other firm that may profit from a short lived slowing in price increases is Dollar General , which UBS says is positively correlated to disinflation. Logitech , the maker of computer peripherals, may also profit from disinflation. To be certain, the stock was downgraded to carry from buy this month at Deutsche Bank, which said a tricky economic backdrop could hurt computer and video spending. Other stocks included on this list are Abbott Laboratories and Clorox . — CNBC’s Michael Bloom contributed to this report.
3 people dead in Toronto office shooting near daycare | Canada Tonight
Three adults are dead after a shooting contained in the lobby of a North York business office in Toronto. The...
