The outperformance comes as U.S. inflation remains stubbornly high, amid continued supply-side constraints, a hot labor market, and the impacts of the Russian invasion of Ukraine on energy and commodity pricing. Although it remains to be seen just how effective the Fed’s moves will be in containing the price rise, we don’t think the inflation theme will outperform meaningfully in the longer term. On the other side, if inflation persists, it could eat into consumer spending power, impacting the broader U.S. economic growth and, in turn, hurt the stocks in our theme.