...I don't favour any stocks given Where We're At.
...but at least gold stocks face tailwinds ahead, lithium stocks face more headwinds.
...when deflation accelerates, the Fed will finally pivot, that's what will favour gold stocks , but deflation would be punishing for the auto (and EV)/lithium sector.
....this is why Macquarie which has been the last of the investment houses to stay positive on lithium stocks to finally wave the white flag.
....will you want to fight the instos? Defiance will cost $$. Macquarie upgrades ASX gold stocks
Alex Gluyas
Macquarie has significantly increased its earnings forecasts for ASX gold producers, but says it is “underweight” iron ore, lithium and thermal coal stocks.
The moves incorporate Macquarie’s commodity teams’ latest price forecasts, which included higher gold, alumina and thermal coal prices for the next year. Meanwhile, lithium and iron ore projections were cut.
The broker upgraded Evolution Mining, Bellevue Gold, Gold Road Resources, Ramelius Resources, Westgold Resources, and St Barbara from “neutral” to “outperform”.
It also upgraded Capricorn Metals and New Hope from “underperform” to neutral.
Macquarie downgraded Mineral Resources and Atlantic Lithium from outperform to neutral, and Argosy Minerals from neutral to underperform.
Among the large caps, Macquarie prefers South32 over the iron ore majors, but likes BHP compared to Rio Tinto. The broker also prefers Newmont over Northern Star and Evolution, and maintained its preference for Arcadium Lithium and Mineral Resources over Pilbara Minerals and IGO
