Earlier this month China halted REE exports to Japan, and has now done the same to the US. Call it modern warfare, i see it as a mini response to the Fed labeling china as a currency manipulator. China is responsible for 90%+ of the REE production in the world. So what does this mean for investors? The price of these rare elements has already exploded since the end of Q2, call it a bubble but with recent action the next move up in the sector should go through the roof. On first glance the following are some plays that we might still be able to take advantage of. MCP , REE, AVL
These above securities have already seen dramatic price increase so you might say I fear buying in at the top of this bubble but mass liquidity will continue to flow into this sector creating a bubble that will trump the recent gold run many times over. Just know when to get out and stay abreast of Chinas actions.
-AR
