Lithium valuations getting crushed because of Morgan Stanley fall out and not them but major instos believing that there will be an oversupply at some point. The problem though is that these our Wall Streeters who don’t physically see the crazy demand occurring in China, or understand the momentum. Most of them bought into the Tesla hype, which has now settled down a bit given the company’s fiscal problem. A lot of them took their gains, and are moving into other metals like Nickel, Vanadium, etc and probably used their gains to reinvest in oil. Frankly who knows and who cares.
However, the demand side is being significantly underestimated because while China is dominating currently, no one is really considering that the US will eventually have to catch up and be forced to once the political climate here changes and we believe in ‘science’ once again, because right now we care more about the Kardashians then we do Klimate Change. The policy IMO in the US will shift in the 2020s once the Democrats take over and over regulate ofc, creating more of supportive environment so that we can catch up to China. And then India, and yes Europe. So eventually the top 4 markets have to be provided for, so why wouldn’t that skyrocket demand and change existing models significantly?
AVZ Price at posting:
15.3¢ Sentiment: Buy Disclosure: Held
