Banter and General Comments, page-28

Interesting comment I received by a broker after I questioned him on the following article put out on the DJ wire service:

2334 GMT - Global economic-growth risks are increasingly muddying the waters for mining stocks. An intensifying threat to above-trend GDP increase as the US-China trade battle escalates is "creating downside risks to commodities and posing a challenge for the resources sector from a sentiment perspective," says JPMorgan. The investment bank thinks it's best to bet on miners of bulk materials, including iron ore--a segment which had not long ago fallen out of favor on forecasts of a long-term downtrend. The steelmaking ingredient is, however, enjoying a renewed bout of support on expectations Chinese stimulus--designed to counter risks from a trade war--will drive up demand. ([email protected]; @RhiannonHoyle)
(END) Dow Jones Newswires
October 08, 2018 19:34 ET (23:34 GMT)

I was specifically asking for guidance on an investment strategy should the US-China trade battle escalate, and in the discussion he made a comment that I thought could be very significant. Essentially, any prolonged trade war will see China look at stimulus options which possibly could extend to the motor vehicle industry and specifically EV's. The one option could be the earlier banishment of ICE vehicles from Chinese roads. This would be a significant stimulus to China's developing EV sector and could promote a more rapid increase in demand for raw material.

I felt a certain level of comfort after our conversation that I was on the right track (strategically) with my investments in the battery materials space.

Just thought I'd share this on a down day in the market.