UBS told which stocks are most resistant to inflation
European stocks are the most inflation-resistant.
values. The most vulnerable are securities of companies from
In the opinion of UBS analysts, the most vulnerable are securities of developing countries - its rise will be first of all reflected in
According to analysts at UBS.
As experts explain, different types of shares have different degrees
Sensitivity to inflation - to a certain level of its they
demonstrate a stable dynamics, but its excess begins to
but exceeding it negatively affects them. The higher the inflation rate rises, the
the more negative is the impact.
As a benchmark for determining the expected level of inflation
bank experts take the yield of 10-year U.S. government bonds as a reference point for determining the expected rate of inflation. Stocks
EM segment will be resilient if it does not rise
above 2.4%. For stocks of companies included in the S&P 500, it should be
no more than 2.5%, for U.S. value stocks and Stoxx 600 member securities
2,9%. The most "strong" are European value stocks: for them this
the figure may be as high as 3.4%.