Given that the market has been stressed recently with fears over rising raw material prices stoking inflation and possibly higher interest rates, it makes sense to start looking at some companies that might benefit from these conditions. It might seem strange to designate highly cyclical stocks like these two stocks as winners from a market sell-off. Still, all cycles are different, and investors need to adjust their playbooks when facing other opposition.
If the market is selling off because of fears of raw material prices rising and eating into profit margins, buying stocks with positive exposure to those self-same raw materials makes sense. In addition, there’s evidence to suggest the increase in commodity prices and investment could last over a multi-year timeframe.
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