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Economic growth should persist in 2024, albeit at a weaker pace, according to top strategists at UBS Global Wealth Management (GWM). "We do see the savings rate — the recent savings rate — as unsustainably low, and we expect it to rise over time," said Brian Rose, a senior economist and investment strategist at UBS GWM, during the webinar. "And really, the base of the economy depends very heavily on what happens to the savings rate." Rose continued: "If the savings rate just gradually drifts higher over time, then we can have a soft landing. 33 top stocks across sectorsWhile UBS is constructive about 2024, its strategists think investors should prepare for anything.
Persons: Solita Marcelli, Brian Rose, Rose, there's, Marcelli, Daniel Scansaroli, Nicolas Le Roux, Le Roux, financials Organizations: UBS Global Wealth Management, UBS, Business, US, UBS GWM, Federal Reserve, UBS GWM's, Companies Locations: Americas, Ukraine, Israel, Europe, China, Japan, Australia
Investment bank UBS has identified global stocks to buy in what could be a year of "slowflation" — its term for the combination of sluggish growth and sky-high inflation. The Swiss bank's strategists said they expect global growth to be a weak 2.6% in 2023, below the 50-year average of 3.5%. UBS strategists referred to this state of slow economic growth coupled with moderately high inflation as "slowflation" in a note to clients on April 18. UBS strategists identified seven distinct periods of slowflation in the U.S. since 1970, lasting an average of 12 months each on average. UBS identified stocks likely to outperform under these conditions, taking into account historical lessons learned, current earnings momentum and valuations, and the views of their stock analysts.
Disinflation could be the big surprise of 2023, according to UBS. 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. Here are the 10 stocks UBS noted. Netflix is positively correlated to disinflation, according to the note. Another firm that will benefit from a temporary slowing in price increases is Dollar General , which UBS says is positively correlated to disinflation.
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