Credit Suisse says bet on these stocks when inflation is falling

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Investors looking to snap up company shares that are poised to benefit as inflation falls should look no further than a list of such stocks from Credit Suisse.

The December consumer price index report, released Thursday, showed that inflation fell 0.1% in December but was 6.5% higher on the year, which is what economists expected. The hope is that inflation continues to cool as the Federal Reserve's aggressive path of interest rate hikes weave their way through the economy. As price increases slow, the central bank can decrease the size of interest rate increases and eventually will start cutting rates, a huge benefit to stocks.

7% – well below the Fed's 2% mandate – over the next 12 months, Jonathan Golub of Credit Suisse wrote in a Wednesday note. In addition, disinflationary trends are playing out globally, boding well for the U.S. in the coming months. This should lift some stocks going forward, according to Credit Suisse. To assemble a list of stocks poised to rise amid falling inflation, the bank identified the top three names in each sector that will benefit the most from two-year break evens.

 

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