One of the enduring themes of value investing is that what is out of favor today will be tomorrow's hot sector. David Dreman appeared on CNBC recently, advising people to load up on stocks that will likely benefit from inflation. Many of them are in currently beaten-down sectors like REITs and energy, which is currently being beaten down earnings-wise. He also recommended the strong names in the financials.
The CNBC blog post with his picks is here, and the webbed interview with him is available on the same page.
I'd like to thank VInvesting for posting this item first.
Update: If you have dial-up, as I do, the CNBC video is likely to be unwatchable. The same interview's at Youtube, as posted by Value Investing Pro, which can be loaded before it's played.
When I went over there, the Youtube version had a total of 82 views. Contrarians might be interested in that figure.
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Double digit inflation will come sooner or later.
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