Hi Sector and Lambrae
There have been 2 themes playing out in recent months... gold and the rise in SP's of blue chips, both of which are actually central bank related. Finding themes based on growth fundamentals has been a tough thing to do in the funny money environment. [
@Lambrae... you seem to have some feel for bitcoin, is that central bank related too or do you see something else in it?].
Lithium is a part of the family of EV commodities which I have been playing for several months and I have had a hard time of it until just recently... starting to come good. Lithium, nickel, copper and graphite should all do well for the next several years... so now is the time to work out how best to get set.
fwiw... I am applying the lessons I learned in the gold sector.
The key to that is to only buy into the big projects. Scale is the only thing which survives in all weathers. I am inclined to take risks... so I prefer to try a bit of stock picking and concentrate my funds. Higher risk but better rewards if you jag things. My picks... lithium = PLS, has scale, is in production, has enough cash and is well positioned with commercial relationships. Graphite = TLG, has a unique graphite deposit which is huge and high grade, it is really a tech company with its own graphite deposit and is up to its armpits in MOU's with a swag of European majors. Nickel = SGQ [and a small holding of AUZ], at this stage it has not proved up a large deposit but I am gambling that will change, a bit of a punt. Copper = ALK [and small punts on ICG, AIS and AMG]... ALK might seem a strange choice but there is a good chance they have discovered a new teir 1 porphyry in NSW plus plenty going for the company with gold and REE.
I agree with you
@Sector about being wary with the market trading so far away from its fundamentals base. However, I keep in mind what happened in the 2008 GFC crash... of the 2000+ stocks at the time there were 50 which continued on unhindered. I think that will be the case again if things start to fall apart. Apart from gold and the EV story I personally can not see any other clearly identifiable themes... I think it is definitely a stock picker's market going forward, all of the ingredients for a crash have been present for a couple of years without it happening... amazing imo.
Lastly... about IGE. I have been holding that for months, my money management dictated how I traded it so thankfully I am not seriously injured... one member of the management seems completely incompetent but IGE could be something pretty wild if the tech is actually commercial. If the promised funding comes through the SP will stabilize... but the thing to watch is if the economics are proved in the Amsterdam project.
