Citi says focusing on sectors and industry groups negatively correlated to inflation "provides a contrarian opportunity."
Bloomberg report on the analysis from Citi:
- the bank’s estimates show that the Federal Reserve reducing bond purchases, coupled with a gradual easing of supply-chain bottlenecks, likely means that core inflation for this cycle will peak in February.
- investors should consider reallocating into sectors like consumer and health-care stocks that carry a negative correlation to changes in consumer prices
Citi say supply-chain bottlenecks should ease in coming months.
Link to Bloomberg for more is here (may be gated)
Wednesday will bring US CPI data (for October) ... maybe this will be the reaction until it peaks in February!
