Proactive Investors - Run By Investors For Investors

Rare Earth Stocks Give Abundant Returns as Investors Pile In

Rare Earth Stocks Give Abundant Returns as Investors Pile In

The Fuller Treacy Money Global Strategy Service
Empowerment Through Knowledge

 

 

 

Your free daily email from Fuller Treacy Money

Comments of the Day

30 May 2019

 

 

Video commentary for May 29th 2019

 

 

Eoin Treacy's view

A link to today's video commentary is posted in the Subscriber's Area. 

Some of the topics discussed include: global sovereign yield compression, need for the Fed to cut rate soon, Wall Street in the region of its trend mean, oil and gold stable. grains ease from intraday highs, rare earth metals surging, Dollar firm, 

 

 

Trade Not the Only Risk; Markets Agree Adjusted Yield Curve Is Inverted; Higher Volatility Is Coming

Thanks to a subscriber for this report from Morgan Stanley. Here is a section:

 

 

Eoin Treacy's view

A link to the full report and a section from it are posted in the Subscriber's Area.

The commonality in the compression of global sovereign yields is a clear sign bond investors, everywhere, have concluded we are at the top of the interest rate cycle. If interest rates are unlikely to rise, they can fall and the big question is when that is likely to happen.

 

 

Email of the day on cloud computing stocks

I have a simple question.  A large number of cloud computing companies seem to show strong growth on the price charts for the last few years.  Do you think that this is a fundamentally based trend which will continue, or is it just another dot com bubble?

I am as always addicted to your excellent research and presentation.  Watching your video is the first thing I do every morning, and I even have to divide the Friday video into three parts, otherwise I feel deprived on Mondays.

 

Eoin Treacy's view

Thank you for your kind words and I am delighted you enjoy the videos. The cloud computing sector has been one of the best performers in this bull market as the app-based economy has flourished on the back of data centre buildouts.

 

 

Rare Earth Stocks Give Abundant Returns as Investors Pile In

This article from Bloomberg News may be of interest to subscribers. Here is a section:

The People’s Daily, a flagship newspaper of the ruling Communist Party, said in a commentary that the U.S. shouldn’t underestimate China’s ability to fight the trade war. The country is “seriously” considering restricting rare earth exports to the U.S., the editor-in-chief of the Global Times, a newspaper affiliated with the Communist Party, said in a tweet. An official at the National Development & Reform Commission told CCTV that people in the country won’t be happy to see products made with exported rare earths being used to suppress China’s development.

 

The U.S. relies on China for about 80% of its imports of rare earths, the group of materials that are used in everything from electric cars to high-tech military equipment. Rare earths, which include elements such as cerium and dysprosium, are relatively abundant in the Earth’s crust but mine-able concentrations are less common than other ores.

China produces about 70% of the world’s mined rare earths and its industry is dominated by a handful of producers including China Northern Rare Earth, China Minmetals Rare Earth Co., Xiamen Tungsten and Chinalco Rare Earth & Metals Co. Some of the country’s listed rare earths stocks are small caps, making them easy targets of speculation.

The country has taken a proactive approach to managing the global market, Bank of America Merrill Lynch said in a report, citing steady exports in the 1990s that depressed prices and a 40% reduction in its export quota in 2010 that led to a spike.

 

Eoin Treacy's view

The last time rare earths were a political football in 2010, it was because China cut off exports to Japan in an effort to force high-end manufacturing to migrate. That set off a massive run-up in rare earth metal prices, investment in new mining facilities and a drive towards substitution. Faced with the threat of losing it dominant position China relented and began exporting again. Prices collapsed, most of the new miners went bust and some semblance of normality returned. How is this occasion different?

 

 

2019: The 50th year of The Chart Seminar

 

 

Eoin Treacy's view

There will be a memorial concert for David at the Royal Festival Hall on October 5th. It looks like we will have a room at the Royal Festival Hall for an hour before the concert for a memorial. Wine and canapes will be served. Afterward we will retire to the Benefactor's Lounge where Tim Walker, Chairman of the LPO will dedicate the concert in David's memory. The concert will be from 7:30 to 10pm. If anyone would like to attend the concert in addition to the memorial there will be a box to tick on the booking form which I will provide as soon as I have it.   

Since this is the 50th year of The Chart Seminar we will be conducting the event on October 3rd and 4th to coincide with the memorial on the Saturday.

In the meantime, if you have any questions, would like to attend, or have a suggestion for another venue please feel to reach out to Sarah at [email protected].  

The full rate for The Chart Seminar is £1799 + VAT. (Please note US, Australian and Asian delegates, as non-EU residents are not liable for VAT). Annual subscribers are offered a discounted rate of £850. Anyone booking more than one place can also avail of the £850 rate for the second and subsequent delegates.

 

 

Eoin's personal portfolio - cryptocurrency long opened

 

 

Eoin Treacy's view

Details of this trade are posted in the Subscriber's Area. 

 

 

 

 

 

 

 

The information provided on this website (www.FTMoney.com) is for the purposes of information only.  This website and its content is not and should not be considered or deemed to be an offer of or invitation to engage in any investment activity.  Nothing FT Money does and nothing on this website is intended to operate or be construed as the giving of advice or the making of a recommendation by FT Money to any investor or prospective investor.

FT Money and any other group or associated company of it is not authorised or regulated by the Financial Conduct Authority in the UK or any other regulatory body in any other jurisdiction. 

By means of your login to our service you are deemed to thereby accept our current Terms of Business including this notice,

Except for permission to download a single copy for personal use, the research published by FT Money may not be reproduced, distributed or published in whole or in part by any recipient for any purpose, without the prior express consent of FT Money.

Information featured on the website is based upon information and data provided by FT Money and remains the intellectual property of FT Money.  Some of the information may also be provided by third parties and whilst FT Money will seek to ensure that information featured the website is updated on a regular basis, FT Money does not accept any responsibility for, and disclaims any and all liability for, any such information (including the accuracy of such information) or views or opinions expressed on the website.

Any person considering an investment opportunity as a result of data presented on the website should give full regard to all the content of the website, and should perform their own due diligence and obtain advice from suitably qualified professional advisers before investing.  Prospective investors are also encouraged and recommended to take their own independent legal and taxation advice together with any other advice that they may consider necessary to consider the benefits and risks attached to any investment opportunity.

No representation or warranty, expressed or implied, is or will be made or given by FT Money  (including its executives, employees, agents, contractors and advisors) in relation to the accuracy or completeness of the contents of the website, save that any such liability is not excluded in respect of fraudulent misrepresentation.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use