US markets were down again last night. US markets are continuing...

US markets were down again last night. US markets are continuing their gradual decline over the last five months since the December peak because of high US inflation. Mnb has managed to rally strongly since December so doesn't necessarily follow the US. The same high inflation will mean higher forecast profits for MNB. A continuing gradual decline over the next year for US markets until inflation eases is probably my expected best case scenario. If they do continue to decline at a similar rate over a year or so, it is quite possible that our market can do its own thing depending on our own fundamentals. However if China continues to slow, it won't help our market. Still going to be a stock pickers market for at least a year or two I expect. Fundamentals will continue to be good for renewables especially but plenty of stocks in that space have room to correct further short term after big rallies.
It certainly is possible that the current inflation is going to come off the boil as supply chains unblock and that will probably be the end of the current market correction. Just a matter of how long that takes.
MNB will continue to be volatile on the back of all of this but as it nears production next year, I think it has to keep trending much higher. Despite the big volatility along the way, MNB is up eight fold in two years as it has progressed development. I can see a similar rise over the next two years, as that development moves to production of phosphate fertiliser and as the green ammonia project moves into development. More volatility along the way is something I'm sure we will have to continue to put up with. A stock isn't likely to go up eight fold without some big swings along the way.
I read something last night that Europe is considering pushing their renewables target up from 40 to 45% by 2030 to reduce dependency on Russian gas.

https://www.euronews.com/green/2022/04/21/eu-considers-jumping-to-a-45-renewable-energy-target-by-2030

That could boost lithium and other renewables again even if markets correct further. I think the only certainty is going to be continuing volatility. The growing push for more renewables should put more focus on green hydrogen and green ammonium as well. While green ammonia is potentially going to be a rapidly growing fuel source, it doesn't need to be. Ammonia is already a very large industry and a very large CO2 polluter. Producing green ammonia as a fertiliser saves a huge amount of CO2 emissions so still plays a very large role in CO2 reduction targets. Green ammonia prices could attract a big premium and fertiliser prices in general could remain elevated for a number of years, especially as long as inflation remains a concern. Fundamentals for Mnb and for the renewables sector will remain strong despite the potential for further falls in markets because the inflation pressuring markets is a boost to miners of commodities with sharply higher prices. Mnb remains very undervalued long term and short term IMO. Other renewable stocks, especially lithiums have gone up by much more and are still years from production but fundamentals remain strong and may have just improved with this latest push in Europe to increase the renewables target. Therefore, trying to pick short term moves in this environment is going to be extremely challenging. Holding the bulk of positions in stocks with the best fundamentals in this environment might be the best strategy. Taking part profits into larger rallies to be able to buy the deeper dips sometimes works but often back fires when a stock just keeps going up. I've experienced that many times, especially with A4N, LCK (now NRZ) and LKE recently. In most cases, I've gotten away with it by moving from one of those to another as the other was making a low. Trading often benefits from a degree of luck and in that case the tax man benefits too!
I wonder if just holding a number of the right stocks longer term is better. It's certainly easier.
The hard part is finding the right ones.