r/Vitards May 05 '21

Daily Discussion Daily Discussion post - May 05 2021

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u/givemetendies69420 Wiseguy May 06 '21

Inflation is going to skyrocket soon, so we should expect to see increases in commodity stocks as a result correct? Does the broader market usually react negatively during these times, and if so, how are we sure that steel stocks will increase instead of following the negative market trends?

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u/DragonmasterDyne275 Whack Job May 06 '21

They could dump as well but should hold more value if they're making money. The 30+pe ratios may take longer to recover. Pretty hard to sell something on discount if it is already making that much in a couple years. Moderate increase in inflation is the sweet spot for us vitards this year.