UBS says disinflation may be the big surprise of 2023 — 10 stocks to play the trend

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Investors can prepare their portfolios for growing disinflationary forces on the horizon.

Forget inflation. Disinflation could be the big surprise of 2023, according to UBS. "Having peaked higher and persisted for longer than most expected, inflation is finally rolling over fast. From here, we think the pace of disinflation will 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, according to the note.

, Europe, the United Kingdom, Asia-Pacific and Latin America. According to the note, these names were chosen for their return sensitivity to changes in inflation, price performance during periods of declining inflation, and revenue sensitivity to changes in inflation indexes. Here are the 10 stocks UBS noted. Netflix is positively correlated to disinflation, according to the note.

 

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