We have been really vocal about our ultra-bullish 2022 outlook on green battery metals, particularly lithium stocks / graphite stocks / cobalt stocks. While the lithium market did amazing things in 2021 we now see that the chart setups in the graphite sector are insanely bullish. This is no over-statement by the way.
As per our 7 Secrets of Successful Investing we recommend to focus on perls in the market: “Only perls are worth your capital.” In other words, investors should be really selective, set the bar high before accepting an investment in their portfolio.
How does this relate to the graphite sector? Let us explain.
Last summer, we rationalized what would be the biggest investing opportunity of the decade.
We simply compared the biggest investing opportunities of the last 3 decades, and found some sort of ‘asset class rotation’ logic in there. We projected, based on historic patterns, what would happen in this current decade.
This is what we wrote:
As a refresher, this is the summary of how we concluded that green battery metals will qualify as the number 1 investing opportunity of this decade:
The big rotation that comes with market crashes help us understand the big opportunity for each decade, prior to it starting. We saw this in 2000 and 2010 so we should see it again in 2020 and beyond. It is commodities that came out of a major bear market, so some segments in the commodities space should create a secular trend in 2020 and beyond.
Moreover, this makes sense, fundamentally. Commodities prices typically react on supply/demand dynamics. If renewable energy is going to continue to grow this decade it will be the commodities as inputs into green batteries that will be in high demand, ultimately even potentially in supply deficit. IF this is what’s underway the market will react to this, way before the real deficit hits in the real world.
In 2021, we hit lithium stocks in our Momentum Investing service. All of the lithium stocks we tipped went up between 100% and 300%.
What we noticed, prior to the big moves in lithium, is consistently wildly bullish reversal setups in the entire space. More importantly, they were orderly, structured, beautiful. Remember this investing secret: Beauty Results In Profitable Investments.
As 2022 kicks off, we see that the graphite space is doing what lithium did 6 months ago: printing really bullish reversals, orderly, beautiful, across the entire space. It’s not just, coincidentally, one or two graphite stocks that look good. It’s lots of them!
You have to be able to find them, though, as the graphite space is a ‘wild wild west’ just like any other commodity or emerging sector.
We are really bullish on graphite stocks, and believe many of them will double and triple in the coming 9 to 12 months.
In our Momentum Investing weekend analysis we featured 5 distinct graphite stocks that have absolutely beautiful (also phenomenal) setups.