Because climate change is not going away, I guess critical minerals will be given preference if governments are forced into more intervention if Evergrande is really the bogey its made out to be. Of course casualties may occur for highly leveraged if it flops, but that's the associated risk. A good time to clean out a few IMO.
These issues have been anticipated and our banks increased reserves and now have tighter lending policies. As usual, the issue is amplified by the press to shake the market for others to benefit those who have the means. Can't see that coming from retail or surplus from small business given Covid has emptied a few pockets. Perhaps super funds as employment ramps up. I would be more worried by the US monetary system where temporary funding by Congress runs out in December where the capacity to raise interest rates is limited by the size of their debt which flows on to other banking systems who borrow from the FED who are also paying off US debt like tributaries through their borrowing. Of course the exchange rates will be the automatic stabilizer or perhaps transition to a world digital currency is on the horizon given BIS (Bank of International Settlement) rules have changed. Time will tell.
But in a few months time the approvals RNU is seeking will be in place and the market for product will continue to grow irrespective of the monetary system we see now. No problem.
RNU Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
