Replies to post #91787 on Savvy Trades and Investments

[gilead23]

Almost nobody benefits from significant inflation. Your best bets historically would be energy, real estate, medical.

But generally speaking
benefit = hurt less

The 70’s saw single digit pe’s in the major indexes.

In theory a company with both pricing power and significant long term debt at low rates with few near term expirations might be best situated.

Pricing power means operations can keep up with inflation and while asset values will increase in nominal terms the value of fixed rate debt decreases.

Don’t know who that describes.

I have some LIFZF as a royalty trust. They get both a percent of sales and a flat amount per ton of iron ore. That seems to be inflation protective except iron prices are heavily tied to China which just trades one set of risks for another.

[nelson1234]

theoretically, high p/e stocks hurt more, low p/e stocks hurt less.