Equity Themes for Fading Inflation
Portfolio consultants explain why CPI may normalize in the next year and highlight strategies for positioning equity portfolios for fading inflation.
- Natixis Investment Managers Solutions has created a framework for classifying industry sectors based on their sensitivity to a higher or lower inflation environment.
- Analysis shows that a few key line items are likely to drive inflation lower throughout 2023.
- While value strategies tend to fare better when inflation is rising, growth strategies may outperform when inflation is declining.
- For investors who think that we may be at an inflection point between rising and falling inflation, now may be a good time to revisit equity portfolio allocations.
This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed may change based on market and other conditions.