The world economy is still holding its breath with respect to the US Debt Ceiling and the Evergrande situation. Given that the can has only been kicked down the road rather than actually resolved, a lot of institutional money is parking up in safe harbours rather than sinking money into stocks.
Ordinary retails see the headlines and they too hold their money and sit on the sidelines rather than moving during the uncertainty.
Fortunately, it's just the beginning of October which is historically a massive month during the year for the markets. Spodumene should see a major rise in price on Friday once the Chinese workforce is back from Holidays and regarding the Evergrande and Debt ceiling situations, more likely than not, we will see an 11th-hour approach to these to either lift the ceiling or mitigate the damage. Fortunately, in the case of Evergrande, they are mainly a construction company and not a major financial service like Lehman Brothers were, so if they do entirely go into free fall, it's not likely to throw the entire global economy into chaos (although there's bound to be short term pain for Australia).
If anything, consider this a blessing. Under what ordinary circumstances could you purchase shares in a company which a year from now will be in the +billion dollar market cap club, that's passed the FID mark, almost risk-free, totally debt-free, has placed 80% of its product in contracts and is fully funded while under construction at 41 cents a pop? I mean it's actually remarkable if we all step back and think about it.
If I literally had any more ability to get more money to buy I actually would right now. And if your feeling a bit pissed off because the market hasn't rewarded us yet, remember those famous words of Warren Buffett :
"In the short term, the market is a popularity contest. In the long term, the market is a weighing machine.". You are invested in a project with extremely good fundamentals, very high likelihoods of continued growth of its total resource and a commodity which is only going to go up and up in price as time goes on. Know your worth. Ride the turbulence out, its just a minor distraction.
CXO Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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