I have been following Tepper's fund. Some of his largest holdings are Dean Foods Df and Goodrich Tire. In a round about away I believe that he thinks we are headed for stagflation. This may seem contrary ,but these companies have been deeply discounted due to high input costs. Wheat, Cotton, and Rubber setting in some cases all time highs. These companies have had to raise prices to meet this challenge. If they get any type of lower input cost this could greatly increase profits.
Very rarely do you see the price of something going down. Once that box of cereal is $4.00 bucks rarely do the reduce the price even if input costs decrease.
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