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20 June 2021
15:55 hour

Inflation scare fuels commodities rally, but what's in store for financial stocks?

Seeking Alpha

16/05/2021 - 23:42


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Related headlines:

  1. The Tell: Inflation scare? The stocks that perform best — and worst — when prices rise (21/05/2021 - Market Watch)
    The biggest inflation scare in 40 years is sending stock-market investors back to the history books for a look at what does and doesn't work when prices are rising.
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  2. The Tell: Inflation scare? The stocks that perform best — and worst — when prices rise (21/05/2021 - Market Watch)
    The biggest inflation scare in 40 years is sending stock-market investors back to the history books for a look at what does and doesn't work when prices are rising.
    [visit article]
  3. NewsWatch: Inflation scare? The stocks that perform best — and worst — when prices rise (22/05/2021 - Market Watch)
    The biggest inflation scare in 40 years is sending stock-market investors back to the history books for a look at what does and doesn't work when prices are rising.
    [visit article]
  4. 5/11/21 Notes - FAKEOUT RALLY IN GROWTH STOCKS? (12/05/2021 - Reddit Stock Market)
    Tuesday was a dramatic continuation of Monday (5/10) for the inflation trade, with XLF, XLE, XLRE, and most commodities closing before yesterday's close. In the growth trade, we saw severe overnight selling met with early buying in the XLK/QQQ/ARKK stocks. My opinion is that the downward pressures on growth stocks will show that this growth rally is a dead-cat bounce, and we'll see prices lower by the end of the week. Please note I am 24 years old and will generally bet on tech, not against it. Today's pullback in value due to the rally in growth appears to me to be a great buying opportunity, or at least the start of what may be a better buying opportunity. I am long XOM, JPM, HMY, and WOOD, and would love to see entry opportunities in CPER, JO, and SILJ. Daily charts A growth bull could argue that the growth stocks are nearing support, while value stocks are nearing resistance. A value bull could argue that growth is overextended, inflation is coming, FED minutes next Tuesday, etc. ​ What are your guys' thoughts?   submitted by   /u/banknino [link]   [comments]
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  5. When is it a good time to buy commodities? Are commodities a good time to buy now? (19/05/2021 - Reddit Stocks)
    Bought into commodities ETF GSG. I think that commodities have faced a pullback, but are on for a rebound, especially oil and wheat due to hedge against inflation and things opening back up. But I also hear people saying commodities could go down further. What are your thoughts?   submitted by   /u/xSathya [link]   [comments]
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  6. Too late to get in on commodities market? (11/05/2021 - Reddit Stocks)
    Obviously commodities (oil, steel, etc) have seen a nice run up in the past few months due to inflation concerns while tech & growth have been sold down heavily. I am wondering at this point in time would the best play be to ride the remaining momentum of commodities or buy the dip in tech. I am afraid that when inflation does really start picking up and the Fed finally raises rates that it could be a sell the news event for commodities due to the major run up beforehand. What are your thoughts about the best sector to invest in right now?   submitted by   /u/jimbo1245 [link]   [comments]
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  7. Help Me Understand CME Futures And Inflation (17/05/2021 - Reddit Stocks)
    So right now, the mainstream narrative is that inflation is going to run red hot mostly due to a rally in commodity prices. This inflation has the potential to be more than transitory, meaning it lasts more than a couple of quarters at most and will result in forcing the FED to raise rates and crash growth stocks. This is why apparently, tech stocks are underperforming while value, or more specifically, manufacturing and mining companies outperform (look at XME for example). My question is if that is the case, then why are steel futures for U.S. Midwest Domestic Hot-Rolled Coil Steel going down CME Link? Right now they peak in June at $1,520 a tonne before steadily going down for the foreseeable future. Similar things can be said about other commodities such as copper, which remains relatively steady before gradually going down going into next year Copper Link. On the agriculture side, major commodities like corn appear to be peaking in the near future as well Corn Futures. So taking all of this into account, it would appear that the shape of the futures curves would indicate that commodity prices would peak in near future before gradually going down as supply meets demand. Shouldn't this mean that inflation is indeed transitory as the FED predicts? What am I missing here?   submitted by   /u/GushingGranny1 [link]   [comments]
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  8. Jefferies’ Chris Wood holds on to cyclical trade on Wall Street; sees no imminent tapering scare (12/04/2021 - Financial Express)
    While inflation worries have brought some investors on the edge of their seats in recent weeks, the ace equity strategist maintains that a tapering scare will only come after treasuries have sold off more and cyclical stocks have rallied higher from current levels.
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  9. What stocks to invest during periods of high inflation? (06/03/2021 - Reddit Stocks)
    Hi y'all,what kind of stocks to pick during periods of possible high inflation? Other than real estate and commodities which is widely regarded as a better investment,I wonder if is it possible to hedge my investments in stocks instead.I summarize my questions in the following: 1.Does inflation damages the value of too big to fail stocks? 2.What happens if a hyperinflation occurs suddenly? 3.What sector/stock to pick if so?   submitted by   /u/fernandeztahi [link]   [comments]
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  10. Inflation plays (12/05/2021 - Reddit Stocks)
    Hello everyone, With lots of talk of inflation and the potential effects of it - could this be a good time to get into commodities? Perhaps something such as $DBC. Do not commodities tend to do well in inflationary times?   submitted by   /u/Electric_Andry [link]   [comments]
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  11. Are lithium mining stocks a hedge against inflation? (18/05/2021 - Reddit Stocks)
    If commodities like gold and mining stocks tend to go up during periods of higher inflation, then would lithium mining be a good hedge against inflation? Independent of inflation, it has a lot of near future demand regarding EVs, 5G phones, etc. What do you guys think?   submitted by   /u/JonathanL73 [link]   [comments]
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  12. Market Extra: The biggest ‘inflation scare’ in 40 years is coming — what stock-market investors need to know (08/04/2021 - Market Watch)
    It's unclear whether inflation will see a lasting comeback, but a booming, stimulus-fed economy rebounding from the COVID-19 pandemic seems all but certain to send some near-term inflationary shock waves through financial markets in the months to come.
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  13. Forecast on VIX, S&P, commodities, USD, in anticipation of tomorrow's FedF FOMC. Possible rise in VIX — or market rallies? (16/06/2021 - Reddit Stock Market)
    ES1! S&P futures are sitting just above its 7dma and in line with its previous ATH from May 9. VIX closed above its 7dma, with 1-day MACD reversing from low. The odds of Jerome Powell admitting that inflation is a foreseeable issue and the need to raise interests rates are slim to none. Possible announcement of a 2022 - 23 increase in rates? I still don't see it happening. WTI has been consolidating at its previous high from March 4 with a lot of momentum leading up to tomorrow's FOMC. Does JP aknowledge inflation but reassure the markets that it has no plans to raise rates? Commodities rally?   submitted by   /u/vutffj [link]   [comments]
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  14. Clean Energy Fuels +39% as meme stocks extend rally (09/06/2021 - Seeking Alpha)

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  15. Commodity prices seeing sharp rally; buy these metal, oil & gas stocks to pocket gains (23/04/2021 - Financial Express)
    Prices of commodities have surged significantly since last year. Metal prices are up 40-50% and the agri-index is 30% above January 2020 levels, according to domestic brokerage firm JM Financial.
    [visit article]
  16. Stocks to buy at high inflation era ? (09/05/2021 - Reddit Stocks)
    Hey everyone, As everyone talking about high inflation due to rise of commodities and high demand, what stocks do you keep eye ? I do think companies with great competitive advantage can easily rise its own product prices. But who are they ?   submitted by   /u/Melyche [link]   [comments]
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  17. Bank stocks reaching new highs (14/03/2021 - Reddit Stocks)
    So what the heck is going on with bank stocks lately? They are currently trading at all time highs and they still keep going up with no sign of stopping. I bought into Citibank(C) when it was trading at 68.00 a share just to diversify my portfolio a bit and the stock is continuing to climb along with JPM, BAC, and WFC. You think with the inflation scare going on these stocks would not being doing so well. I am just curious if anybody knows why these stocks are climbing up really high and when can we expect a pullback?   submitted by   /u/JRshoe1997 [link]   [comments]
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  18. NewsWatch: Oil futures reach 13-month high as global stocks advance with U.S. markets shut (15/02/2021 - Market Watch)
    The rally in commodities that some say is the start of a supercycle continued on Monday, buoying resource stocks on Monday.
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  19. Commodities crashing, growth rising (17/06/2021 - Reddit Stocks)
    Steel, gold, aluminum and copper companies down around 7%, oil down around 4%, software companies up around 4%, clean energy up the same amount. What do you make of this? One would think that after last FOMC where the Fed admitted inflation may be more than transient that investors would take on inflation plays (like commodities) and throw away growth plays.   submitted by   /u/BonzoAndBonzo [link]   [comments]
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  20. The Tell: Inflation scare? Look at this chart before freaking out (11/06/2021 - Market Watch)
    Inflation is on the rise in America, but if rising prices were likely to persist, contrary to the Federal Reserve's expectations, the data would be painting a different picture. one economist argued Friday.
    [visit article]
  21. NewsWatch: Inflation scare? Look at this chart before freaking out (12/06/2021 - Market Watch)
    Inflation is on the rise in America, but if rising prices were likely to persist, contrary to the Federal Reserve's expectations, the data would be painting a different picture. one economist argued Friday.
    [visit article]
  22. NewsWatch: Inflation scare? Look at this chart before freaking out (12/06/2021 - Market Watch)
    Inflation is on the rise in America, but if rising prices were likely to persist, contrary to the Federal Reserve's expectations, the data would be painting a different picture. one economist argued Friday.
    [visit article]
  23. NewsWatch: Inflation scare? Look at this chart before freaking out (11/06/2021 - Market Watch)
    Inflation is on the rise in America, but if rising prices were likely to persist, contrary to the Federal Reserve's expectations, the data would be painting a different picture. one economist argued Friday.
    [visit article]
  24. Inflation knocking at the door? Here is how equity, debt investments may get impacted (08/06/2021 - Financial Express)
    Global inflation usually spills over to emerging economies through the commodities channel which is already showing up in the WPI which captures inflation at the producers’ level.
    [visit article]
  25. Europe Markets: Oil futures reach 13-month high as global stocks advance with U.S. markets shut (15/02/2021 - Market Watch)
    The rally in commodities that some say is the start of a supercycle continued on Monday, buoying resource stocks on Monday.
    [visit article]
  26. Is the inflation scare overblown? What about the stock rotation? (24/02/2021 - Seeking Alpha)

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  27. Commodities Corner: Why copper’s drop from all-time highs may not mark the end of its run up in prices (17/06/2021 - Market Watch)
    Copper prices have dropped from a record high last month following efforts by China to stem the rally in commodities. But supply constraints and growing demand suggest that the industrial metal’s run-up isn’t over yet.
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  28. : Corn prices are surging and China’s partly to blame (27/04/2021 - Market Watch)
    Corn prices hit an 8-year high Tuesday, part of a broad rally for agricultural commodities that's stoking inflation fears. There are several drivers behind the move for maize, including strong demand from China.
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  29. Asia shares spooked by U.S. inflation scare, hope for Fed calm (13/05/2021 - Investing.com)

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  30. Inflation Stocks (12/05/2021 - Reddit Stocks)
    After this mornings data I am done fighting the data and I want to rotate from my high tech multiple stocks into inflation stocks. I can’t just pull out and have cash sitting there because that’s not a good play during inflation either, so what are everyone’s favorite inflation stocks? Thanks.   submitted by   /u/Tribebro [link]   [comments]
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  31. Low-interest rates keeping equities attractive; upside in commodity stocks now limited | INTERVIEW (03/06/2021 - Financial Express)
    There is a possibility of a cyclical strength extending from here, however, investors need to be careful while playing a theme such as commodities, particularly after an excessive rally.
    [visit article]
  32. Nasdaq, Dow Jones, S&P 500 get some tech help as inflation scare proves short-lived (10/06/2021 - Seeking Alpha)

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  33. Tech stocks continue to drop because of investors worry on inflation ahead of fed minutes. (19/05/2021 - Reddit Stock Market)
    I hate market manipulation so much. Hedgefunds just sell completely to scare off paper hands so that they can buy back cheaper. Fuck them. And then the media jumps in to speculate like Jim Cramer who used to work for a hedge fund to play into scare tactics, it’s absolutely disgusting that they do this. This whole “fed minute thing” is bullshit they always sell off before fed minutes and act like they know something we don’t, mean while Powell will come back out and say the same shit he’s said before. “Keeping the interest rates at zero until 2023” God it’s not that fucking hard. He says that same shit every ????????single ????????fucking ????????time????????. If you believe the media you’re dumb and stop being a paper hands to play into hedgefunds.   submitted by   /u/rusticatlas [link]   [comments]
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  34. Tell me about you commodities positions. (06/03/2021 - Reddit Stocks)
    Frankly commodities seem like a no-brainer to me moving forward out of lockdowns, especially growth/industrial sector commodities like Steel, Silver etc. Picked up some AMS:MT recently (I personally think it's great value at it's current price and may pick up more) looking to add more commodities to my portfolio.   submitted by   /u/lalalong1 [link]   [comments]
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  35. Are we going to see a rise in VIX tomorrow in anticiation of FOMC? (16/06/2021 - Reddit Stock Market)
    ES1! S&P futures are sitting just above its 7dma and in line with its previous ATH from May 9. VIX closed above its 7dma, with 1-day MACD reversing from low. The odds of Jerome Powell admitting that inflation is a foreseeable issue and the need to raise interests rates are slim to none. Possible announcement of a 2022 - 23 increase in rates? I still don't see it happening. WTI has been consolidating at its previous high from March 4 with a lot of momentum leading up to tomorrow's FOMC. Does JP aknowledge inflation but reassure the markets that it has no plans to raise rates? Commodities rally?   submitted by   /u/vutffj [link]   [comments]
    [visit article]
  36. Inflation Hedges (10/03/2021 - Reddit Stocks)
    Everyone has been talking about inflation and how best one can protect ones portfolio. As we all know, the US government just announced more stimulus cheques in the amount of $1400. When there is so much money sloshing around in the economy things become more expensive. Interest rates are also on the climb and everyone has been watcing the 10 year to see how high it will go. Heading over 1.5% was a big deal. Anyways... I've been looking into some ideas for some good inflation hedges and I like REIT's as well as companies that are known to increase their dividends over time. What I really like is.... FARMLAND. Firstly, by owning, we get a piece of "real property". Farmland is one of the greatest protections against inflation. Not only that but the commodities that are produced on farms... soybeans, wheat, canola etc are all at very high levels... que food inflation. anacdotally I have noticed this at the grocery store myself. Therefore I recently purchsed some very cheap calls in both FPI and LAND as well as shares. They both pay a dividend. I guess I'm talking my book a bit aren't I? In closing, I also did some open source research and found out that no other than Mr. Gates himself owns... get this... the most farmland in America! Do what the rich guys do right?! Bill Gates: America’s Top Farmland Owner | The Land Report I'd like to know other posters thoughts on inflation and if tand how hey are fortifying their portfolios against it.   submitted by   /u/bifburger [link]   [comments]
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  37. Asian stocks rally after Dow hits record as inflation worries ease (11/03/2021 - Investing.com)

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  38. Asian stocks slip as global rally skids on inflation fears (23/02/2021 - Investing.com)

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  39. Bit worried about the stock market this time around, who here has a bit more knowledge on is happening future wise? (04/03/2021 - Reddit Stocks)
    So i've been investing for some time now, and i've been through some pull backs and also corrections, but quite not like this. Due to treasury bonds rising, indicating an inflation, as well as big shot investors pulling back for their profits due to over values stocks and switching over to stocks that will go along with the economy, i've always been a nasdaq investor. essentially tech stocks. Ive been investing for about 10-15 yrs now, and this is the first time ive been through a stimulus check that fuels the economy, yet alone something that might risk inflation. usually I know corrections and crashes come back 6 mo to a year, but with Biden's presidency and the continuation of money being printed to fuel economy, yet alone people switching over to stocks that will go with the economy, I question how long before tech stocks recover this time. I think the reason I worry is because of the great inflation of 1970 which took close to 10 years before the stocks started to rise. oil is rising, interest is also rising and power of the dollar is going down. this time, im not sure if it will recover in a year like it normally does. What do you guys think this time around for people who have been investing a bit longer?   submitted by   /u/ridewithwill [link]   [comments]
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  40. Commodities Corner: Why the rally for corn, soybeans and wheat likely isn’t over (29/04/2021 - Market Watch)
    Corn has led the rally among agricultural crops, rising more than 30% in 2021 to touch its highest prices in nearly eight years. That has outpaced the rally for wheat and soybeans, which also reached their highest prices since 2013. The run-up for corn and soybeans may not be over.
    [visit article]
  41. Suggestions Needed: Stocks that will do better during Inflation (13/05/2021 - Reddit Stocks)
    I need some help finding the stocks/etf or sector that will do better in inflation time. Looks like the inflation is real. And I would like to diversify myself according to that. I have banks in my mind - I bought XLF etf and feel good about that during inflation. Please suggest few more sector stocks/etfs for diversification.   submitted by   /u/Snoo-79760 [link]   [comments]
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  42. Commodities Corner: Here are the biggest risks to oil’s rally (22/04/2021 - Market Watch)
    Oil prices have climbed more than 25% this year, but risks to the rally include snags in the Covid-19 vaccine rollout globally and threats to the global recovery worldwide, a potential return of oil supplies from Iran, and increases in the pace of crude output from major producers.
    [visit article]
  43. NASDAQ and growth stocks heading for a major correction? (24/03/2021 - Reddit Stock Market)
    The NASDAQ is 6.7% off its February highs and many are speculating that we could be heading for correction territory, especially with the 10 year rising and prospective inflation spooking the market. I took a few swing positions in 5 of my favorite stocks (all growth stocks) about 10 days ago. Originally I had planned for 2-3 day swing trade. All these companies were trading at a great discount from all time highs after the market wide sell off a few weeks back. I bought in during the rally and of course it was right before the bond yield scare and current chaos plunged the NASDAQ. My entire account is tied up in these trades and I guess I could’ve managed my dollar cost averaging better but I just didn’t foresee a major market correction, especially since the market had just finished selling off a good chunk. I’m leaning towards holding out. Since all of my stocks have reached oversold on the RSI (of course that doesn’t mean they can’t continue to sell off) but unless we’re heading for a serious market correction it just wouldn’t make sense to cash out and buy back in. Of course no one can predict the markets but I would like to figure out what the consensus is regarding general investor/trader sentiment around the market right now. Do you foresee a significant market correction? If not, why not?   submitted by   /u/HotspurN17 [link]   [comments]
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  44. Bitcoin nears $50,000, wider adoption fuels record rally (14/02/2021 - Investing.com)

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  45. : Here’s what the 2016 value rally says about how far the current advance can go (10/03/2021 - Market Watch)
    The value rally can continue, being driven by continuously increasing yields and inflation expectations, a portfolio strategist says.
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  46. Correlation between market correction/crisis & commodities (13/04/2021 - Reddit Stocks)
    Hey guys. I'm fairly new to stocks, but I've been learning more and more (with real money and of course only the amount I'm willing to lose). Recently I've seen many predictions or people pointing out to a possible correction of the market approaching pretty soon. Once again, I'm new, so I may say a lot of bullshit. Let's get to the point. I was wondering what kind of commodities (apart from gold and the regulars) usually get high prices at such moments? I was really looking into some soybean etf and other kind of agricultural commodities and I was wondering how these usually perform. Also wondering for other commodities or sectors. I got around 1/4th of my portofolio (which is little) in cash ready to pick up something. Thanks in advance guys!   submitted by   /u/Lord_Ancap [link]   [comments]
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  47. Asia extends global stocks rally, U.S. bond yields fall on easing inflation fears (11/06/2021 - Investing.com)

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  48. Commodities Corner: Lumber and steel markets look to Biden’s infrastructure plan for their next big boost (16/04/2021 - Market Watch)
    There’s little doubt that demand for lumber, steel, and other commodities will get a boost from President Joe Biden’s $2.3 trillion proposed infrastructure package. Prices for some building materials, however, have already booked phenomenal gains in the first three months of the year, potentially setting limits on an extended rally.
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  49. Commodities Corner: Lumber and steel markets look to Biden’s infrastructure plan for their next big boost (16/04/2021 - Market Watch)
    There’s little doubt that demand for lumber, steel, and other commodities will get a boost from President Joe Biden’s $2.3 trillion proposed infrastructure package. Prices for some building materials, however, have already booked phenomenal gains in the first three months of the year, potentially setting limits on an extended rally.
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