EV/Lithium, page-625

...in an earlier post I showed you how overextended the EV stock rally was, which led to a brutal mean reversion that even after a -90% drop from the peak, valuation remain stretched relative to results delivery and outlook.

...now look at the Global X Lithium Fund (which comprise of 9.6% holding in ALB, 5.3% in MIN, 4.76% in Tesla, 4.7% in SQM, 4.34% in PLS, 4.67% in BYD etc).

...from its Covid March 2020 lows to its peak in Nov 2021, just 1.5+ years, its price skyrocketed 512%!

....since that peak, it has declined -58% but yet on a 5 year timeline basis, it is still up +53%!

...when holders cite that price correction was overdone, that is looking at the 1 year window, but they fail to cite that lithium stocks have gone gangbusters in 2020-21 due to the meteoric rise in the lithium price, and the mistake they made is to continue to hold on for far too long rather than exit when lithium price started making lower lows.

...it is completely plausible that the mean reversion process could take it down all the way back to where it (uptrend) began in 2020, in line with X-mas tree formation theory.

5 year view
LIT Stock Fund Price and Chart — AMEX:LIT — TradingView