Certain industries are more susceptible to the effects of deglobalization. We explore how investors can identify potential beneficiaries of global supply-chain realignment considering industry, thematic and structural characteristics.

Inflation in the U.S. and many other countries has accelerated for more than a year, so we reviewed the performance of the MSCI USA factor and sector indexes over that time period as well as the sensitivity of each index to inflation. 

Stock-level inflation sensitivity can help investors assess a portfolio’s exposure to inflation. We use this metric to construct hypothetical portfolios aligned with investors’ range of views on inflation.  

Inflation and the chatter around inflation have been rising since last year (as shown in the exhibit below) following years of relatively tame inflation. This macroeconomic shift is likely to have both a short- and long-term impact on asset prices and has raised many important questions for investors.