Replies to post #85815 on Savvy Trades and Investments

[bbotcs]

wadegarret: As a veteran of the stock market of the 1970's, if we do get serious inflation, small cap stocks of companies that can raise their prices is the way to go. Of course, if Biden's tax increases put the economy into recession, that would be the end of inflation, unless we got stagflation--high unemployment and inflation. But that would be a mixed blessing for corporations who would pay lower wages due to more workers than jobs.

Yesterday, so-called Mayor Pete proposed a tax on each mile driven.
Even Democrats are howling about that one.

[researcher59]

Wade - VIAC +2.03 to 47.04 and DISCA +3.24 to 44.47 on numerous analyst upgrades ..... these stocks were a bargain on last week's big selloff. VIAC is up nearly 20% and DISCA up 30% since the Friday lows. Probably too late to get in now, but I'm still holding.

Just 7 days ago VIAC did a nearly $3B capital raise at $85 per share, so if institutions were willing to pay that price, surely they're willing to average down in the $40's.

Yes, in this market one has to pay higher than historic PE's.

[researcher59]

Wade: you should be looking at forward PE's not trailing PE's. Lots of companies reported weak earnings and losses in 2020 due to the pandemic and economic slowdown. Earnings will be rebounding sharply in the coming year. Forward PE's are what is relevant -

https://www.wsj.com/market-data/stocks/peyields

https://www.yardeni.com/pub/yriearningsforecast.pdf