Generationally high inflation was the story of 2022. That’s not going to be the story of 2023. The boogeyman of disinflation—and even some deflation—is about to turn out to be the most important risk to stocks, and investors are going to need to determine how one can position portfolios for falling prices.

U.S. consumer prices rose 6.5% 12 months over 12 months in December, the sixth consecutive month the pace of pricing gains decelerated. Investors were pleased. The


S&P 500


gained 2.7% for the week. The


Dow Jones Industrial Average


gained 672 points, or 2%. The


Nasdaq Composite


was the large winner, closing up 4.8%.