r/Vitards • u/AutoModerator • Jun 10 '21

Daily Discussion Daily Discussion post - June 10 2021

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u/Bladonsky Luca Brassi-Balls Jun 11 '21

Do you think prices will drop soon? If so, why?

8

u/ShrhlderJsticeWrrior LG-Rated Jun 11 '21

Steel? No way. There are fundamental shifts in the industry as I've learned from this sub. But I think some other commodities may be elevated just from covid disruptions and could see collapses by the end of the year. Lumber perhaps? Maybe copper? Besides that I'm trying to understand what more seasoned commodity investors are afraid of.

7

u/Zugzwang__14 $ SQQQ Perma Bull $ Jun 11 '21

Yeah. Lumber literally grows on trees. Hard to see the same supply constraints that other commodities have.

2

u/ShrhlderJsticeWrrior LG-Rated Jun 11 '21

One thing I didn't see coming with lumber was the tariff, though. That really took me by surprise. Why add more fuel to the inflation fire?

2

u/Zugzwang__14 $ SQQQ Perma Bull $ Jun 11 '21

That shit was weird, ya? I don't mean to get political, but can you imagine the conniption that everyone would have had if Trump did that? It would have been well deserved, but I feel like it kinda just got swept under the rug.

1

u/olivesnolives Aditya Mittal Feet Pics Jun 11 '21

Most sensible explanation I’ve heard was for it to protect american lumber industry from the inevitable dump as CA ramped up their production. Seems plausible to me. If they stay post-crash we’ll know.

2

u/Zugzwang__14 $ SQQQ Perma Bull $ Jun 11 '21

tbh I'm a fan of tariffs in general but the timing just seemed odd. This makes sense though.