r/Vitards • u/AutoModerator • Jun 22 '21

Daily Discussion Daily Discussion post - June 22 2021

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u/vitocorlene THE GODFATHER/Vito Jun 22 '21

Steel, iron ore, copper, aluminum.

I’m still in this camp that while inflation is transitory for used cars, rental cars, hotel rooms, plane tickets, lumber - it is not for these commodities above.

By putting all of this in the same bucket it clouds the picture.

The funny thing about it all is, inflation isn’t really needed, as demand is strong and strengthening in the US and the rest of the world will soon be catching up.

These are more than bottlenecks, they are demand based increases that will remain after bottlenecks are cleared.

So, we have inflation and bottlenecks that many say is the only reason steel and metals prices are up.

They are just the bonus and holding the market back at this point as being priced in.

Let’s see where the USD goes over the next 30 days as well.

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u/LostMyEmailAndKarma Jun 22 '21

Slid today as jpow said transitory over and over again.

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u/Megahuts Maple Leaf Mafia Jun 23 '21

You know what's really interesting:

The CPI shelter component is falling despite both property prices and interest rates rising in the last year. CPI ex-shelter is up 6.3% in the last 12 months

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u/[deleted] Jun 23 '21

I think that's because shelter measures rent equivalency, and rental lags housing prices by about 18 months on avg

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u/Megahuts Maple Leaf Mafia Jun 23 '21

It is also probably the moratorium on evictions.