Most commodities have been hit really hard lately. There is only One Commodity Not Impacted In 2022, we said so a few weeks ago, and it’s still the case. In fact, it’s the commodity that will deliver most profits this decade, it is the Biggest Investing Opportunity Of This Decade. Welcome in the wonderful world of lithium.
We said so and will continue to say so: we have a Wildly Bullish Lithium Forecast for this and next year.
Back in June, when markets were breaking down and the entire investor community was pulling capital out of stocks (they either re-entered at higher prices or regret now) we were screaming from the roofs: Bullish Lithium Outlook 2022. We even mentioned, exceptionally, a specific lithium stock (LAC).
Fast forward to today, we continue to see a very strong lithium price chart.
The price of lithium trades some 4% below its ATH.
What happened in the lithium space in the meantime is very interesting. While the price of lithium remained very high, lithium miners got sold like crazy. Many of them declined 50% from their April/May highs. Most of them are getting close(r) to their previous highs now.
Stated differently, the lithium space had a major divergence between the price of its leading indicator (lithium price) and the miners. This divergence did not last for long. We would argue that there still is a divergence, but it’s in the process of disappearing.
We firmly believe that demand for lithium will remain very high and that the sector will continue to offer opportunities. Buy the dip should be the strategy for investors with a medium to long term timeframe.
In our Momentum Investing service we focus on the lithium sector, among the few sectors that we believe will do extremely well this decade and in the months/years to come. We update every few months our lithium shortlist, the last update is from 2 weeks ago, all our lithium picks did phenomenally well in recent weeks (LAC was one of them, but there are several other lithium plays that we like a lot)!